Islamabad (Agencies): Pakistan Railways has achieved an ‘improved operation ratio’ through an effective reform strategy that focuses on cost-cutting, optimizing train loads, outsourcing the commercial operation of passenger and freight trains, and capitalizing on the freight market. A senior official in the Ministry of Railways told media that Pakistan Railways (PR) is currently running 98 daily passenger services on different routes across the country.
The official explained that the profitability of any railroad is determined by its operating ratio, with any railroad operating below 100 percent considered financially viable. Pakistan Railways has achieved an operating ratio of about 98 percent for the financial year 2023-24. However, the official noted that 57 percent of PR’s passenger trains operate under Public Service Obligation (PSO) to meet the transportation needs of remote areas, which impacts its financial health.
The official highlighted that the expenditure on regular salaries, pensions, and operational fuel (HSD) accounts for about 89 percent of the total expense, leaving only 11 percent for utilities, repair, and maintenance. Despite these challenges, Pakistan Railways is not considered a loss-making entity, as it covers its operating expenses, including salaries and fuel, from its revenues, with pensions provided by the federal government through annual grants in aid.