ISLAMABAD, Dec 1: Four out of five major public sector corporations went into significant losses or failed to meet their revenue targets during the first three months (July-September) of the current financial year because of higher international oil prices.

This is the gist of quarterly statistics released by the ministry of finance on five major corporations including Karachi Electric Supply Corporation (KESC), Pakistan International Airlines, Pakistan Railways, Pakistan Steel and Wapda.

The data suggest that Wapda is the only corporation whose cost of fuel slightly reduced during the first quarter mainly because of higher water availability.

The KESC system losses during the quarter were 1.3 per cent higher than the target, while its expenditure was Rs745 million higher than the target due to the increased fuel price and cost of power purchased. Its net loss was Rs478 million higher than the target.

The actual deficit of Pakistan Railways increased by Rs1.544 billion. Its revenue expenditure was exceeded the target by Rs782 million due to increase in operating expenses, oil prices and payment of interest on overdraft.

Total expenditure of Railways during the first quarter was higher than the targets mainly due to increase in salaries of civil servants and three times increase in fuel price.

The increase in fuel cost also adversely affected the profitability of Pakistan International Airlines (PIA). As against the target of Rs974 million, the airline sustained a huge loss of Rs1.604 billion, which was higher than target by Rs2.578 billion.

The PIA’s total expenditure was (Rs17.585 billion) higher than the target (Rs14.523 billion) by an amount of Rs3.06 billion causing a loss of Rs2.578 billion. The increase in expenditure was due to sharp increase in fuel cost, increase in traffic/ ramp handling, catering, cockpit crew salaries, crew layover, aircraft rental and interest payments.

The Pakistan Steel Mills had projected a net profit of Rs531 million for the first quarter of 2005-06. However, it earned only an amount of Rs155 million which was less than Rs376 million against its projected profit.