Pakistan Railways recorded a net loss of more than Rs61 billion during the fiscal year 2024-25, according to the latest report issued by the Auditor General of Pakistan. The loss represents an increase of Rs9 billion, or 19.11%, compared to the previous fiscal year, reflecting the organization’s worsening financial position.
The audit report states that the state-owned enterprise continues to face serious financial sustainability issues due to the widening gap between revenue generation and operating expenditures. During FY2024-25, Pakistan Railways posted an operating loss of nearly Rs60 billion, while its operating loss ratio climbed to 65%.
Financial data covering the past five years indicates a steady deterioration in the railway’s performance. Total revenue for FY2024-25 reached Rs92.7 billion, whereas operating expenses surged to approximately Rs153 billion, highlighting the growing imbalance between income and expenditure.
According to the report, operating expenses increased by 60% between FY2020-21 and FY2024-25, while operational losses rose by 29%. The findings suggest that management has been unable to achieve financial break-even despite continued government support and budget allocations.
The audit reviewed 84 out of Pakistan Railways’ 160 formations, covering expenditures of Rs105.6 billion and receipts totaling Rs84.25 billion. During the review, auditors identified financial irregularities amounting to Rs34.42 billion involving Pakistan Railways and its subsidiary companies.
The report categorized the irregularities into several areas, including Rs24.6 billion related to budgetary violations, Rs11.2 billion linked to weak financial management, Rs7.2 billion associated with project management deficiencies, and Rs11.5 billion involving non-budgetary matters, land, assets, and inventory management.
Although Pakistan Railways reported total assets worth Rs515.33 billion during FY2024-25, the Auditor General noted that its revenue reserves remained unchanged at Rs26.05 billion for the second consecutive year. The report concluded that the organization has been unable to generate retained earnings, raising concerns about its long-term financial sustainability and profitability.
