Pakistan Railways (PR) is seeking an astronomical 130% increase in its budget, which would mean a jump from Rs. 31 billion to Rs. 71 billion, all of which will be used for the purchase of 1,050 new bogies. However, the ministries of Finance and Planning declined the demand in a meeting of the CDWP and put off the decision.
The PR received 292 out of 820 freight wagons and 78 out of 230 passenger coaches by June 30, with full delivery expected by June 2026. The Finance Ministry has questioned the costs involved and used an exchange rate of Rs. 278 per dollar, instead of the higher Rs. 285 proposed by the Ministry of Planning.
The Planning Ministry said the delay, canceled bids, and changes in the upgrade under the China-Pakistan Economic Corridor (CPEC) have increased costs and liabilities for PR.
Import and local charges have also surged by 15% during the last five years and increased PR’s costs. The Planning Commission has criticized PR for slow progress, asking it to increase efficiency and raise revenue.
It added that PR poor show would enable it only to corner 20% of passenger markets and 4% freight markets at a cost of Rs. 55bn in FY23; suggest PR formulate a reasonable business plan before making any investments towards enhancing its share in the national transport network.
