Pakistan Railways (PR) has put forward a proposal to increase its budget by 130%, raising it from Rs. 31 billion to Rs. 71 billion, to purchase 1,050 new bogies. This request, however, faced strong opposition from both the Ministry of Finance and the Ministry of Planning during a recent presentation to the Central Development Working Party (CDWP), leading to a postponement of the decision.
As of June 30, PR had received 292 out of the 820 planned freight wagons and 78 out of the 230 expected passenger coaches, with all deliveries scheduled for completion by June 2026. Despite these additions, PR continues to struggle with rising operational costs and limited financial returns, leading to a significant loss of Rs. 55 billion in the fiscal year 2023.
The losses and financial challenges have raised concerns among government officials, with many calling for a detailed business plan from PR. This plan would aim to improve revenue by addressing current market performance issues and identifying new revenue-generating strategies.
Officials are pushing for a comprehensive approach that will make PR’s operations more sustainable and effective, given the impact of budget increases on the national economy.
The decision on the budget increase will likely be revisited once PR provides a clearer plan for how these additional funds will be used to achieve a turnaround in its financial performance.
