Pakistan Railways had a deficit of Rs. 35.3 billion during the first seven months of the current government’s tenure (April-October).
According to documents made available to the media, railway revenue was Rs. 33.76 billion during the period under review, while expenditure was Rs 69.08 billion.
The federal government’s financial assistance in the form of grant aid is always used to cover the budget deficit. For this purpose, the federal government has allocated Rs. 47 billion in 2021-22 and Rs. 45 billion in 2022-23. One major cause of the large deficit is the 36-day suspension of train service due to flooding in August.
It was reported that Pakistan Railways’ deficit began in 1974, and it has regularly sought federal government assistance to fill the resources gap since then.
More than Rs.75 billion is spent yearly on regular salaries for approximately 64,000 employees and monthly pensions for 125,000 pensioners.
In addition to spending on salaries, pensions, high-speed diesel (HSD), and utilities, the available resources are used to repair and maintain locomotives, passenger carriages, waggons, and service and residential buildings.
Moreover, the government took the following steps intending to improve the financial situation of Pakistan Railways:
The implementation of RAABTA is an initiative aimed at improving customer convenience. Customers can use the RAABTA platform to plan their trip, check train status, select and purchase a seat, order car rentals, meals and refreshments, and book hotels.
Pakistan Railways is doing everything possible to improve train punctuality. Every train is monitored, and every train’s detention is reviewed and corrected.
Pak Rail Live, a mobile application for real-time train tracking, has been launched to assist passengers. Train punctuality has increased from 63 percent to 80 percent due to close monitoring at the divisional, headquarters, and ministry levels.
High-capacity/high-speed hopper trucks have been added to the fleet for quick coal movement and unloading, and new high-capacity/high-speed coaches and waggons are being purchased.
E-ticketing via mobile apps and credit cards has been introduced to assist and attract more passengers.
In collaboration with the People’s Republic of China, a policy for technology transfer is being pursued, the indigenization of railway rolling stock in Pakistan Railways facilities.