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ISLAMABAD: The Auditor General of Pakistan has identified financial irregularities amounting to Rs11.25 billion in Pakistan Railways (PR) for 2024-25, highlighting persistent weaknesses in financial management, procurement and internal controls that continue to weigh on the performance of the state-owned enterprise.
According to the audit report, Pakistan Railways remained dependent on regular financial assistance from the federal government because of recurring operational losses and management shortcomings. The report called for reforms in fare management, service quality and operational efficiency to improve revenue generation and place the organisation on a sustainable financial footing.
The audit report identified seven major instances of financial mismanagement across various operational activities. The largest irregularity related to the non-recovery of railway dues from government departments and private parties amounting to Rs9.95 billion.
Other observations included an unjustified refund of Rs20.03 million in taxes to a contractor; a loss of Rs419.91m arising from excess payment of customs duty; non-levy of import surcharge and container charges; and execution of deposit works without prior receipt and recovery of funds, resulting in a loss of Rs522.47m.
