Rs11.1b PR bailout package no more than a peanut

ISLAMABAD - The Pakistan Railways is set to get a hefty amount of Rs 11.1 billion as the bailout package, which insiders believed, would be nothing more than peanuts. The PR, running into deficit, has anxiously been waiting to get lifeline in shape of Rs 11.1 billion bailout package to improve its current situation, yet it could prove as peanuts before the multi-billion losses faced by the organization, sources in the ministry told TheNation. Railways Secretary Shahid Hussain Raja told this scribe on Monday, The bailout package will help PR a lot to run the system as a great number of locomotives are in a dire need to get repaired and some part of tracks also demand repair. He said, however, due to serious financial crisis, PR was not able to clear its outstanding dues to PSO. Replying to a question, he said that PR had suffered losses in billions due to the last years floods in the country but PR get repaired and rehabilitated its infrastructure with its own resources. Official sources in the Railways Ministry told this scribe that approximately daily expenditure of the organization were Rs 2.5 billion whereas daily earnings were estimated around Rs 1.5 to 1.7 billion. They were of the view that per month budget of PR was Rs 28 billion, however, expenditures revolved around Rs 34 billion so in this way Rs 4 billion were less than the required amount to run the organization smoothly. Pakistan Railways is in dire need to arrange money for 250 non-operational locomotives of Pakistan Railways to make them functional, the ministry sources said adding that so far around 4000 wagons were waiting for locomotives and with the revival of 250 non-operational locomotives, the ailing organization running into deficit may be stable for some time. However, it is a testimony to the fact as an official of PSO told TheNation that four cheques worth in billions were presented on Friday. Two of them bounced and two cleared and the ones which bounced was presented today. Railway has a credit line of Rs900mn for 15 days, but their outstanding rose to Rs947b, the supply had to be reduced, the official said. The official sources in the Railways Ministry said, The financial bailout package amounted to Rs 11.1b, which also increased annual budget of PR from Rs50 billion to Rs61.1.

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