Running out of steam: Pakistan Railways anticipating a loss of Rs2.5b
The crisis-hit national carrier – Pakistan Railways is anticipating a loss of Rs2.5 billion for the first half of the fiscal year 2012-13. The company has already accumulated losses of Rs1.355 billion in first five months of the period, despite addition of locomotives and trains, The Express Tribune has learnt.
“The figure shows that if the same trend will continue till end of the current year, the company will face a loss of more than Rs2.5 billion,” an official close to development requesting anonymity said.
The government approved project “Special Repair of 150 Running locomotives” during fiscal 2013 under the Public Sector Development Programme for the company. The Ministry of Railways had already floated a tender for the purchase of 69 new locomotives in order to control the deficit.
The railway ministry fixed a budgetary target of Rs7.65 billion for the first half of the current financial year. Out of this target, Rs4.7 billion in revenue was targeted from consumers, Rs0.46 billion from oil transports, Rs0.96 billion through transporting goods, Rs1.31 billion from sundry – earnings from lease of land, advertisement and publicity – and Rs0.22 billion from differential heads – exchange rates variation – for the first six months of the fiscal year 2012-13.
Revenues realised as of November 20 amounted to Rs6.23 billion against the target of Rs7.65 billion, despite 50 functional locomotives and 35 trains in its fleet. Top-line grew 20% compared to Rs5.22 billion in the corresponding period of the previous year; a deceptive figure as the management had expanded its infrastructure through adding new engines, trains and coaches but still earnings remained subdued, signalling a downtrend and tantamount to failure of the management to meet the targets, said the official.
Revenues from consumers, mainly ticket sales, recorded at Rs4.67 billion. But that is not the end of the stick as the biggest shortfall was witnessed in the transportation of goods division where the national carrier was able to miss the target completely and registered paltry earnings of Rs0.45 billion. Moreover, fixed-income from sundry reported Rs0.59 billion compared to target of Rs1.31 billion. Differential earnings amounted to Rs0.133 billion against a target of Rs0.22 billion for the period under review.
The official said that the total number of trains in operation were 88 including 32 express, 30 intra-city, 10 passengers, eight goods transporters, six international and two shuttles. Railways has 150 locomotive engines in working order out of which 105 are in better condition, official added.
“Revenue posted a 21% growth which is encouraging as efforts are being made to enhance earnings and the management is optimistic to meet the budgetary target for the financial year 2012-13,” said Pakistan Railways spokesperson Zubair Shafi Ghauri. ”Induction of more locomotives and new trains on different routes are expected, which will help the management minimise revenue shortfall, Ghauri added.
Published in The Express Tribune, December 4th, 2012
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Another example of why Govt should stay out of the business world - can anyone name a single govt enterprise that makes money or even gives good service?
the land of pure with railway no more go with donkey carts, and camels like the warriors of islam did in the medival times shameless people still poke fun at poverty of India, but remember that a poor state is better than a failed state
Bilour & other coalition partners were handedover such important ministries as per deal with PPP....so make hay while the sunshine....the govt of PPP has also come under a deal with the Americans to bring this country on its knees without an open fight....
Only if railways minister had put head money on people who destroyed Pakistan Railways since Musharraf's departure...oops Half of the ruling KP party runs transport business (buses/trucks/rickshaws) from Karachi to Khyber so I guess the loss is understandable.
sell this junk to some private company... anyways 50% of tracks are gone, and 80% of trains dont run, 90% of engines are broken... what a massive waste of tax payer money on this monster... who travel with rail these days?? Again, as a tax payer I would not want a penny to be spend on this corruption riddled junk industry... sell it at once and use the money on road sector.
But bilour gave a fatwa to the anti-islam film maker. is it not enough?
Bilour is too busy concentrating on Jihad and religious honour. Once he has declared priorities like these, removing him from his post is tantamount to blasphemy in present-day Pakistan. I guess, the poor people of Pakistan and their railways lifeline is a marginal consideration to mard-e-momins like Bilour.
Railways shouldn't be given a penny until this managemet is around. Looking at its management perfomrace, everyone in top management should be fired, If ANP has any feel for poor people then it should have made Bilour resigned. After all he is the one under whose match railways has gone bankrupt.