Pakistan Railways suffered a net loss of more than Rs61 billion during the financial year 2024-25, an increase of Rs9 billion or 19.11 percent compared to the previous year, according to the latest report of the Auditor General of Pakistan (AGP).
The state-owned enterprise (SOE) continues to face serious financial stability challenges, mainly due to the widening gap between revenue generation and operational expenses.
The audit report revealed that Pakistan Railways recorded an operating loss of Rs60 billion in FY2024-25, with the operating loss ratio reaching 65 percent. Over the past five years, the financial crisis has continued to deepen. During FY2024-25, total revenue stood at Rs92.7 billion, while overall operating expenses reached nearly Rs153 billion.
The report noted that between 2020-21 and 2024-25, operating expenses increased by 60 percent, while operational losses rose by 29 percent, highlighting the administration’s failure to achieve financial balance.
The audit covered 84 out of 160 formations of Pakistan Railways, reviewing expenditures of Rs105.6 billion and recoveries of Rs84.25 billion. During the audit, irregularities worth Rs34.42 billion were identified against Pakistan Railways and its affiliated companies.
These included Rs24.6 billion in budget-related irregularities, Rs11.2 billion linked to weak financial management, Rs7.2 billion involving project management issues, and Rs11.5 billion in non-budget irregularities related to land, assets, and inventory matters.
Under Revenue Grant No. 85, Pakistan Railways spent Rs154.212 billion against a final allocation of Rs157.839 billion, leaving Rs3.627 billion (2.30 percent) unutilized. Although the saving remained within the prescribed 5 percent limit, the audit highlighted that available funds were not fully utilised despite significant foreign loan interest obligations.
