PR bleeding billions despite rising expenses

LAHORE:

Pakistan Railways continues to grapple with mounting financial losses despite soaring operational expenses over the past decade, according to a report by the Auditor General of Pakistan for the fiscal year 2023-24.

The report exposes a grim financial trajectory, highlighting that from 2013 to 2023, the state entity incurred operational expenses totaling Rs842 billion, while generating only Rs458 billion in revenue.

The widening gap has led to cumulative losses of hundreds of billions of rupees.

The report's findings point to exorbitant spending, particularly in salaries and pensions, as a major factor in the financial haemorrhage.

In the fiscal year 2013-14, the total expenditure was Rs55 billion against a revenue of Rs23 billion, resulting in a Rs33 billion deficit.

The trend continued in subsequent years. In 2014-15, expenditures reached Rs59 billion, with revenue at Rs32 billion, marking a Rs27 billion loss. In 2015-16, spending rose to Rs63 billion, and revenue increased to Rs37 billion but a Rs27 billion deficit persisted.

Similarly, expenditures climbed to Rs80 billion in 2016-17, while revenue hit Rs40 billion, resulting in a Rs 40 billion shortfall. Whereas in 2017-18, costs further escalated to Rs86 billion against Rs50 billion in revenue, leading to a Rs 36 billion loss.

In 2018-19, total spending stood at Rs86 billion, with revenue at Rs55 billion, leading to a Rs32 billion deficit.

The PR's expenditures ballooned to Rs97 billion in 2019-20, while revenue slipped to Rs48 billion, resulting in a Rs49 billion loss.

Similarly, in 2020-21, expenses were Rs96 billion with revenue at Rs49 billion, a Rs47 billion deficit.

In 2022-23, expenditures hit Rs 112 billion, while revenue was Rs64 billion, leading to a Rs48 billion deficit, and in 2024, the railways managed to generate Rs88 billion in revenue.