The revenue receipts of the Pakistan Railways are less against the target by Rs 762.139 million, which is due to mainly decrease of Rs 113.673 million and Rs 523.367 million in earning from passengers and goods, respectively and decrease in sundry earnings by Rs 72.315 million.
According to PR performance report of the first quarter of July-September FY06, passenger earnings have received a setback due to two major accidents, one at Sarhad Station involving three Express trains and one at Malir Station of Freight Parcel Express wherein through passage remained blocked resulting in abnormal delays in running of trains affecting the movement of passengers.
So far as sundry earnings are concerned, various deals are in pipeline and have not matured. The expected earning in this regard has, therefore, not yet been received. Receipts from other coaching and military traffic decreased by Rs 12.428 million and Rs 40.356 million, respectively.
According to report, the revenue expenditure is more than the targets by Rs 782.219 million due to increase in operating expenses of POL and payment of interest on overdraft.
The total current expenditure during first quarter in FY06 is higher than the targets mainly due to increase in salaries of civil servants from July 1, 2005 and three times hike in fuel prices.
In addition, increase in expenditure is also due to increase in Treasury Bill rate, resultantly, higher rate of interest is being charged on Railways overdraft. Saving in payment of pension will, however, offset in the coming months because it is being paid after three- four months.
The actual deficit increased by Rs 1,544 million due to decrease in operating revenue (Rs 762.000 million) and increase in expenditure (Rs 782.000 million).