Railways posts over Rs55bn loss in FY23

Pakistan Railways suffered a loss of over Rs55 billion during the last fiscal year (FY23) due to incompetence, irregularities, illegalities and bad governance. According to an audit conducted by the Auditor General of Pakistan (AGP) for the fiscal year 2022-23, the performance of the department, which used to seek help from the federal government to clear pays and pensions of its employees, was evaluated on three major areas — governance, risk management and controls. The segregated analysis of fiscal year’s observations depicted that governance issues in administration and Public Sector Development Programme (PSDP) projects were of more serious nature than risk management and controls. This situation showed that there was a loose oversight of the senior management over the efficiency and effectiveness of operations and compliance with applicable laws and regulations.