ECC denies releasing funds to railways ministry for maintenance

Islamabad: The government on Thursday rejected the request of the Railway Ministry to release Rs 10 million in account of maintenance and enhance operations, ARY News reported. 

According to the sources, the Economic Coordination Committee (ECC) has rejected the request to provide funds to the Ministry of Railways. During a recent ECC meeting, the Finance Minister refused to allocate funds and directed the Pakistan Railways to take necessary measures to increase its revenue.

Sources stated that the ECC declined to release an amount of Rs 10 billion for the Ministry of Railways, while Rs 20 billion have already been allocated for pension and other obligations of the railways.

The Ministry of Railways had requested ministry of Finance to release immediate funds for maintenance, Mainline-1 (ML-1) project, pension expenses, and uninterrupted train operations.

However, the railways did not receive the requested funds of Rs 20 billion, even for the restoration of train operations affected by the recent floods.

During the ECC meeting, the Finance Minister stated that continuous subsidies cannot be provided to Pakistan Railways and it is not possible to allocate pension funds from the budget.

The ECC sources further mentioned that the government corporation manages pension expenses through its own means. The denial of funds raises concerns about the financial challenges faced by Pakistan Railways.

As per sources, the Railways immediately requested Rs 10 billion, but the ECC has only approved Rs 2.5 billion. In response, the Ministry of Railways has informed the ECC in writing about the financial difficulties it will face due to this denial of funds.

The Ministry of Railways had approached the ECC for the restoration of train operations, emphasizing the urgent need for funds. Despite repeated requests, the railways did not receive the requested Rs 20 billion for the revival of train operations.