Poor Performance of Railways Management leads to a shocking loss of Rs97 billion

Pakistan Railways was unable to recover dues from several federal and provisional government wings which caused loss worth of billions.

  • AGP pointed shocking irregularities of Rs97 billion during last year.
  • Due to mismanagement of Pakistan Railways, the entity is unable to recover dues from the federal and provisional wings.


Pakistan’s auditor detects irregularities of billion of rupees in Pakistan Railways. Massive mismanagement of the transport entity has been observed that continues to suffer losses upon losses.

It is shocking that the irregularities of Rs97 billion have been pointed out by AGP. In the financial report of 2018-2019 audit has suggested the authorities to take actions against the people who are responsible for the loss of national finances.

According to the report, last year the railway has witnessed the loss of Rs36.6 billion rupees. Hence the transport entity has generated Rs49.6 billion in the year 2018 against the operational cost of Rs85.5 billion.

Irregularities and Embezzlement

According to the objections by audit 56 percent is related to the Railways land, 20 percent is related to the recoveries and 12 percent to the Public sector Development Program (PSDP). The remainder concern losses to the theft, fiscal irregularities, and embezzlement.

Railways have lost land to the land-grabbers worth of Rs51 billion. The report also highlighted the loss of prime Railways sites in Karachi to the “private mafia”. The report also reveals the corruption of the Sindh government by unlawfully leasing Railways land to the private partners who have built multi-story buildings on the properties.

Poor Management to recover dues

Due to the poor management of the entity, it was unable to recover dues from several federal government wings. Due to which Railways nearly suffered a loss of approximately Rs15 billion.

In violation of PPRA rules administration of Railways had granted a contract worth of Rs3.2 billion. Furthermore, authorities are unable to recover Rs2.6 billion from provisional governments.

At the administrative level irregularities of Rs52 billion has been occurred.  Another Rs50 billion in losses were a result of embezzlement, fraud, and theft. Due to PPRA rule violations Railways loses around Rs6.5 billion.

Also See: For The First Time, Pakistan Railways Launches Hiring Process Through Balloting

What are your views on this? Share with us in the comments bar below.

  • Sheikh Rasheed will probably make things even worse – Imran Khan had once said that he would not want him to be even his peon ( chaprasi ) but strange enough made the guy minister of railways.

  • the losses and failure to recover land from mafia shows that mafia is stronger than the state. Worst case is that other ministries also failed to pay bills. Revenue increased slightly but there is a long way to go for recovering losses. Misery still continues. Maybe they should hire foreign experts to see how to cut losses

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