ISLAMABAD: Despite train operations being halted due to flood damage, Pakistan Railways earned a significant revenue of Rs 28.263 billion during the last six months from July to December 2022.
According to an official document obtained by the APP, the expenditure in the same period was Rs. 52.990 billion, out of the total expenditure, with pensions accounted for 35% and salaries accounted for 33%. Pakistan Railways received a grant in aid of Rs. 21.750 billion from the federal government during the same period, July-December 2022. However, it stated that the net deficit for the period July-December was Rs. 2.977 billion.
Pakistan Railways efforts
Despite financial constraints, Pakistan Railways is making every effort to transform itself into a profitable organization. In this regard, the department has devised a two-pronged action plan that includes a focus on core activities as well as an emphasis on revenue generation through non-core activities. Pakistan Railways has been serving the country since its inception. When it comes to investing in railway infrastructure and rolling stock, there have been decades of neglect. This neglect has had a negative impact on the department’s financial needs.
The document stated that the unprecedented floods caused by climate change wreaked havoc on the department’s already deteriorating infrastructure during the first half of the current fiscal year 2022-23. It not only cost Pakistan Railways money because train operations were halted for more than 35 days, but it also added to the department’s workload in terms of restoring railway traffic with its limited resources.
Concerning the focus on core activities, it was stated that Pakistan Railways prepared a business plan in January 2023 to increase revenue and decrease expenditure through improved governance. The plan is being carried out in its entirety. Recent digitization initiatives, such as Railway Automated Booking, Enterprise Resource Planning (ERP) and Travel Assistance (RABTA), aim to improve efficiency and close the revenue expenditure gap.
The department restarted its premium train service Green Line in January 2023, and the train is made up of new Chinese coaches that were recently imported and are outfitted with infotainment services such as LEDs, Wi-Fi, and public address systems. Pakistan Railways is also importing 230 coaches from China, 46 of which have already arrived, with the remaining coaches being assembled in the country through Technology Transfer (ToT).
Concerning the emphasis on revenue generation through non-core activities, it was stated that Pakistan Railways recently presented a plan of business to the Supreme Court (SC) and successfully pleaded before the court to allow the department to use its land for economic activity generation and thus ensure revenue for itself. Other avenues for increasing the department’s revenue potential are being investigated, including the business potential of laying optical fiber cable along railway tracks and branding of trains and stations.
