The government has earmarked Rs 78 billion for Pakistan Railways (PR) for the fiscal year 2016-17 including Rs 41 billion for development schemes and Rs 37 billion for pay pensions of railway employees.
The government had allocated the same amount for the outgoing financial year 2015-16. The government earmarked Rs 37 billion for Pakistan Railways (PR) for the fiscal year 2016-17 under the head of demands for grants and appropriation to meet the current expenditure, revealed the budget documents.
Besides, the government also earmarked Rs 41 billion in the budget for 2016-17 under the head of Public Sector Development Programme (PSDP) to revamp the financially-troubled state-owned entity. The government has allocated the same amount for the outgoing financial year which was later revised to Rs 26 billion.
Pakistan Railways is facing shortage of locomotives and for this reason, government has earmarked Rs 14 billion for the procurement/manufacture of locomotive engines. In addition, rehabilitation of rolling stock will also continue. Repair work on around 800 coaches and 2000 wagons will be completed by this year. The Railways has a huge employees-related expenditure amounting to Rs 25.54 billion for the next fiscal year against Rs 25.41 billion for the outgoing year, which was later revised to Rs 24.64 billion.
Operating cost for 2016-17 is estimated at Rs 17.47 billion against the revised Rs 16.39 billion for the current fiscal year. The PR is to make payment of Rs 300 million in terms of loan repayment while Rs 700 million to be paid in terms of interest on loans in the upcoming fiscal year. The Railways will spend Rs 20.5 billion in terms of employees” retirement benefits against Rs 16.9 billion which was later revised to Rs 18.08 billion. The PR will have to pay Rs 241.38 million for catering to the transfers and postings of its employees. The government has also earmarked Rs 41 billion for ongoing and new projects of the PR in the budget for 2016-17. –Business Recorder