Pakistan Railways (PR) surpassed the revenue target of Rs 32 billion set for the current financial year by Rs 4 billion, mainly because of inducting new/repaired locomotives and increasing the number of freight trains, it is learnt. PR officials are confident to cross Rs 37 billion by end of this month. Government had set revenue target of Rs 32 billion for the outgoing financial year against Rs 28 billion for the same period last financial year. PR had also met the target set for 2014-15 and generated Rs 31.9 billion.
PR has generated revenue of about Rs 19 billion from passengers, Rs 11 billion from freight services and Rs 5.5 billion from sundries with 13 days left in the current financial year. It earned about Rs 18.5 billion from passengers, Rs 8 billion from freight services and Rs 4.5 billion from sundries in the last financial year. Officials attributed the increase in Railways revenue to the increase in the number of locomotives, introduction of new freight and passenger trains like Green Line, Parcel Express and trains' punctuality. Currently PR has a fleet of 443 locomotives out of which 280 are operational including 80 locally rehabilitated and 63 procured during last three years while 163 locomotives are non-operational.
Freight train was the main source of income and the government is focusing on increasing the number of freight trains, official said, adding that earlier 4 freight trains were operating on daily basis; however the number has now gone up to 11 per day. About 25 locomotives were available for freight services last year but now the number has increased to 60. Officials further said that train punctuality has been enhanced by 40-50 percent, which is a big achievement and accounts for higher business.
Sources revealed that the turnaround of PR was made possible due to good budgetary allocations as well as timely releases which helped in meeting financing requirements for developing infrastructure, procuring locomotives and improving other services. For the current financial year Rs 41 billion has been earmarked while Rs 25.7 billion has so far been released to PR. The funds were utilised for induction of new/repaired locomotives, increasing the number of freight trains, upgrading stations, improvement in services which attracted passengers back to this relatively cheaper mode of transportation resulting in increasing revenue.
However, officials revealed that PR will miss the deficit target of Rs 24 billion projected for the current financial year due to a downward trend in scrap market to generate the estimated revenue under this head. Approximately 50,000 metric tons of scrap material including condemned rolling stock is available at present in the Pakistan Railways system. In view of prevailing local scrap market situation, the approximate value of the available scrap is assessed as Rs 1100 million (without taxes) only. Whereas the value, if this scrap material is assessed is Rs 1650 million (without taxes) as per last sale rates, which is likely to create a difference of Rs 550 million loss to the Railways. Therefore PR has decided to wait for appropriate time for improvement in local scrap market.