PR Earns Rs. 40.1b In First Half Of FY-2023-24 Senate Informed

ISLAMABAD, (UrduPoint / Pakistan Point News - 22nd May, 2024) Pakistan Railways has substantially increased its revenue (251%) during the last decade through reforms and it is showing an increasing trend during the current fiscal year as Pakistan Railway has earned Rs. 40.1 billion in the first half of fiscal year 2023-24.

It was stated by Minister for Parliamentary Affairs and Law and Justice Azam Nazeer while replying to a question in the Senate on Wednesday which was about reformative measures being taken by the Government to curtail the loss of Pakistan Railways.

The minister said that PR earned revenue of Rs. 63.250 billion in FY 2022-23, and received a Grant in Aid/subsidy of Rs. 47.5 billion from the Finance Division which comes to Rs.110.8 billion.

He said that Pakistan Railways has substantially increased its revenue (251%) during the last decade through reforms and improved management, yet it is not sufficient to meet Pakistan Railways requirements mainly due to exponential growth in pension.

The minister said that almost 67% of the total expenditure is spent on pay and pension benefits only. Pakistan Railway is currently the only exception which is maintaining pension on its books while the Finance Division provides financial assistance to Pakistan Railways in the shape of Grantin-Aid/subsidy for payment of pay and pension.

He stated that there has been exponential growth in pensions since 2016 in the wake of the new Pension Policy/PM Package for in-service death, issued by the Finance Division in 2015.

The burden of pay and pension has significantly increased on the Pakistan Railway whereas Grant-in Aid/subsidy remained stagnant in comparison to rising expenditure of pay and pension.

He said this is the reason that there are pending liabilities of Rs. 27.5 billion on account of commutation, payment of Prime Minister’s Package, etc.

Pakistan Railways has proposed transferring Pakistan Railways pension responsibilities and funding to the Finance Division, the minister said adding that it would reduce the grant to Pakistan Railways but provide sufficient funds for operational activities by removing the burden of pension liability and regular pension.

He mentioned the issues being faced by Pakistan Railways and said that massive floods in July and August 2022 forced to suspend the train operations for two months and affected badly the revenue of Pakistan Railway.

Resultantly Pakistan Railway is left with less funds for procurement of necessary activities like operating cost, repair and maintenance, purchase of high-speed diesel, and others. Despite facing all these hardships, the minister said that the revenue of Pakistan Railway is showing an increasing trend during the current FY year as Pakistan Railway has earned Rs. 40.1 billion in the first half of FY 2023-24.

The minister rejected the loss of Rs. 55 billion to Pakistan Railways in the FY 2022-23 and said that the improved management system is helping to improve the revenue amount.