Despite being a part of China-Pakistan Economic Corridor (CPEC), Pakistan Railways has suffered a loss of more than Rs 1 Trillion.
The government failed to get 15 trains on contract for commercial benefits and collect dues worth Rs 9.89 billion from federal and provincial departments.
The sources in railways highlighted that in 2018-19, the deficit was Rs 32.76 billion.
Whereas in 2019-20, the railways had to bear losses of more than Rs 50.15 billion while during the first 10 months of the ongoing fiscal year, it is already under liabilities of Rs 36.28 billion.
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36 trains brought down, 84 reduced
Facing a constant state of disrepair, Pakistan Railways has reduced the number of trains from 120 to 84 during the past couple of years which incurred a loss worth Rs 1 trillion.
The major reason behind an increase in it is that some 36 trains were stationed after covid-19 otubreak.
The department is already suffering a severe financial crunch for many years but not much has been done for its revival.
Sources revealed that railways was yet to receive Rs 1.172 billion from federal agencies, Rs 2.44 billion from provincial departments, and Rs 6.27 billion for private sector.
Moreover, National High Authority (NHA) owes Rs 55.4 million to the deparmtent, Pakistan Post owes Rs 37.5 million while SBP is required to pay Rs 38.2 million to Pakistan railways.
Additional demand from the government
Considering the critical situation, the departments have sent budget proposals to the ministry of railways and demanded compensation of Rs 126.12 billion in next budget.
The recommendations include allocation of some Rs 28.26 billion for expenditure related to employees. Rs 30.49 billion for operational expenses, Rs 50.69 billion for retirement benefits, and Rs 2.38 billion for grant subsidy loan advance.
Notbaly, as much as Rs 100 billion were pumped into Pakistan railways to make up for the deficit in the last financial year while some Rs 40 billion were earmarked for the department in the ongoing fiscal year.