ISLAMABAD – Pakistan Railways has reported an operating profit close to Rs1 billion with an allocation of Rs64 billion, as revealed during a Public Accounts Committee (PAC) meeting chaired by Junaid Akbar on Wednesday. However, the Ministry of Railways acknowledged that pension payments have been delayed for the past two years due to budgetary constraints.
The committee reviewed audit observations for the financial years 2022-23 and 2023-24. During the session, the Railways secretary highlighted the strategic importance of the ML-1 and ML-4 railway projects, aimed at connecting Gwadar and Thar to the national railway network.
Audit officials flagged a major procurement irregularity involving the “Special Repair of 100 DE Locomotives” project, where material worth Rs3.39 billion was procured in violation of PPRA rules. The procurement process limited competition by restricting participation to pre-approved firms. Railways officials defended the move, citing adherence to PPRA Rule-15 and Rule-36(B).
Another concern raised was the misuse of land leased to Al-Shifa Trust Eye Hospital in Sukkur, where commercial activities including a wedding lawn and mobile towers were being operated. The PAC ordered action against responsible officials and demanded a report within 10 days.
A separate audit revealed a suspicious discrepancy of 3.61 million litres of HSD oil, valued at Rs506.63 million, unaccounted for in fuel tanks of locomotives. Railways officials admitted the error accumulated over decades and an inquiry was launched. The PAC chairman recommended the case be referred to NAB and asked for a report within 10 days.
The committee also discussed:
- Irregular daily allowances paid to Railway Police prior to the current administration. The practice has now been stopped, and regularisation was recommended.
- Loss of Rs805.2 million due to failure to impose penalties on freight contractors who did not meet service requirements at the Karachi Bunder Dry Port.
An internal PAC meeting also addressed an incident involving the disconnection of electricity meters of PAC member Sanaullah Mastikhel. The matter was resolved after Mastikhel pardoned the FESCO officials involved.
