In a significant development, Karachi Electric (KE) disconnected Pakistan Railways’ electricity supply on Tuesday due to unpaid bills amounting to Rs430 million. This action disrupted essential systems, including the online ticket booking platform, signal operations, and the schedule of 38 daily passenger trains originating from Karachi.
KE’s Stance: Unpaid Dues Threaten Operations
In a statement, KE emphasized the financial strain caused by Pakistan Railways’ unpaid bills, which have been accumulating since May 2024. The power utility highlighted that it has repeatedly served notices and temporarily disconnected defaulters in the past. Supply was restored on the railway authorities’ assurances of clearing arrears and paying monthly bills on time, but these commitments were reportedly not honored.
KE warned that it may have to indefinitely disconnect the defaulting connections if payments are not made promptly. “It is unsustainable to continue electricity supply without any payments,” KE stated, reiterating the urgent need for the railway authorities to settle outstanding dues.
Pakistan Railways’ Response: Counterclaims Against KE
Responding to the situation, Pakistan Railways Karachi Divisional Superintendent Muhammad Nasir Khalili accused KE of owing the railways Rs70 billion in unpaid rent for power installations on railway land over the past decade. Khalili further noted that despite several notices, KE has failed to clear these dues.
The ongoing dispute has escalated, with Pakistan Railways threatening to stop paying electricity bills if KE does not address the rent issue. Khalili added that KE owes over Rs1 billion in current dues and has been delaying monthly payments of Rs100 million for grid stations, substations, underground cables, and other installations located on railway properties.
Impact on Railways Operations and Passengers
The suspension of power has severely impacted Pakistan Railways’ operations, particularly in Karachi. Key systems like the online ticket booking service have been shut down, and train schedules are experiencing delays. Khalili reported that the disruption is causing a daily revenue loss of Rs60 million for the railways, with approximately 35,000 passengers facing significant travel difficulties.
Other Institutions Paying Dues Regularly
Highlighting the disparity, Khalili noted that other institutions, such as Sui Southern Gas Company (SSGC) and Pakistan Telecommunication Limited (PTCL), have been paying their dues regularly. Pakistan Railways recently received Rs215 million from SSGC, Rs111 million from PTCL, and a total of Rs600 million from various institutions, including the Sindh government.
Final Notice Issued to KE
Amid escalating tensions, Pakistan Railways has issued a final notice to KE. Khalili warned that if KE fails to clear its dues, Pakistan Railways will cease paying its electricity bills, further intensifying the dispute.
The standoff between the two entities underscores the critical need for resolving financial disputes to prevent disruptions in essential services. With both sides making significant claims, the impasse is expected to have far-reaching implications if not addressed promptly.
This situation serves as a stark reminder of the importance of clear financial accountability and communication between major institutions, particularly those serving the public.
