Pakistan Railways recorded expenses of Rs153 billion against earnings of Rs92 billion during fiscal year 2024-25.
The financial gap resulted in a net loss exceeding Rs61 billion, according to the Auditor General’s report.
The audit highlighted concerns about the department’s financial position and management practices.
It also identified weaknesses in budget controls and pointed to several financial irregularities.
The report showed that railway operations continued to depend on federal financial support during the year.
Expenses Reach Rs153 Billion in FY25
According to the audit findings, total expenses reached Rs153 billion during FY25.
In comparison, the department generated Rs92 billion in earnings during the same period.
This left a difference of more than Rs61 billion between income and expenditure.
The figures underline the financial challenges facing Pakistan Railways despite its operating revenue.
The audit noted that the department remained dependent on federal grant-in-aid to support its operations.
The available information does not provide a detailed breakdown of individual expenditure or revenue categories.
Audit Flags Financial Management Issues
The Auditor General’s report also raised concerns about financial management within the railway department.
Weak budgetary controls were among the issues highlighted in the audit.
Several irregularities were also identified, according to the report.
The findings indicate a need for closer monitoring of spending and improved management of available financial resources.
The audit called for stronger internal controls across the department.
Better controls could help improve oversight of spending and ensure financial rules are followed.
Better Budget Planning Recommended
The report also stressed the importance of improved budget planning.
Effective budgeting can help departments align expected revenue with planned expenditure.
The Auditor General further called for better use of development funds.
The report indicated that efficient management of these funds is important for improving the department’s financial position.
These recommendations come as Pakistan Railways continues to rely on federal support to maintain operations.
Reducing the gap between revenue and expenditure remains a key financial challenge for the department.
The audit findings provide a snapshot of the scale of that challenge during FY25.
With Rs92 billion in earnings and Rs153 billion in expenses, expenditure substantially exceeded internally generated revenue.
The report did not provide details in the supplied information about specific measures already taken to address these issues.
However, its recommendations focus on stronger controls, improved budgeting and better management of development funds.
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Future financial performance will depend on how effectively these recommendations are addressed and implemented.
