Running out of steam: Pakistan Railways anticipating a loss of Rs2.5b
Revenues go off-track; budgeted targets missed, despite better infrastructure.
LAHORE:
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
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