Pakistan Railway

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FINAL PROJECT INTRO. OF MICRO ECONOMICS SUBMITTED TO: SIR. IMRAN SUBMITTED BY: ASIF HAFEEZ, USMAN GHANI (083582) SUBMISSTION DATE: 26-12-2011 Contents 1. Introduction——————————————-03 2. Railway Earning —————————————04 3. Railway Traffic —————————————05 4. Corporate Profile ————————————–09 5. Corporate Direction ———————————–09 6.

Pricing Profile —————————————–09 7. Cargo Express ——————————————10 8. Concrete Sleeper Factories(CSF) ——————-10 9. Pakistan Locomotive Factory ————————10 10. RailCOP ———————————————— 11 11. PRACS ————————————————–11 12. Karakorum Railway ———————————-11 13. Pakistan Railway Crisis —————————–12 14.

Future of Railway ————————————18 15. Conclusion ——————————————–18 16. Recommendation ————————————19 17. Conclusion ——————————————–20 18. Reference ———————————————-20 Introduction: Pakistan Railways provides an important mode of Transportation in the farthest corners of the country and brings them closer for Business, sight seeing, pilgrimage and education.

It has been a great integrating force and forms the life line of the country by catering to its needs for large scale movement of people and freight. The possibility of Karachi as a sea port was first noticed in the mid of 19th century and Sir Henry Edward Frere who was appointed Commissioner of Sind after its annexation with Bombay in 1847 sought permission from Lord Dalhousie to begin survey of sea port. He also initiated the survey for Railway line in 1858 .

It was proposed that a railway line from Karachi City to Kotri, steam navigation up the Indus /Chenab upto Multan and from there an other railway to Lahore and beyond be constructed. It was on 13th May,1861 that first railway line was opened for public traffic between Karachi City and Kotri, the distance of 105 miles. The line between Karachi City and Keamari was opened on 16. 6. 1889. By 1897 the line from Keamari to Kotri was doubled. The railway line from Peshawar to Karachi closely follows Alexander’s line of march through the Hindu Kush to the sea.

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Different sections on existing main line from Peshawar to Lahore and Multan and branch lines were constructed in the last quarter of 19th century and early years of 20th century. The 4 sections i. e. Scinde railways, Indian Flotilla company Punjab railway and Delhi railways working in a single company were later on amalgamated into Scinde, Punjab & Delhi railways company and was purchased by the Secretary of State for India in 1885 and in January, 1886 it was named North Western State Railways which was later on renamed as North Western Railways.

At the time of partition, North Western Railway’s 1847 route mile was transferred to India leaving route miles 5048 to Pakistan. In 1954 The railway line was extended to Mardan and Charsada section and in 1956 Jacababad-Kashmore 2’-6’’ line was converted into broad gauge. Kot Adu-Kashmore line was constructed between 1969 to 1973 providing an alternate route from Karachi to up country. Railway Earning Earning of Pakistan railways 1998 to 2007. It is the accurate measurement of Pakistan railways earning. [pic] [pic] [pic] Railway Traffic Passenger Traffic

The Passenger Business Unit is responsible for the creation, maintenance and delivery of passenger services and all related amenities to the traveling public, including the transportation of parcel traffic. The Unit is headed by the Additional General Manager (PBU), who is assisted by the following Heads of Departments ( Principal Officers ): Chief Electrical Engineer / Passenger Chief Commercial Manager Deputy Chief Operating Superintendent/Coaches Chief Mechanical Engineer ( Carriages ) Divisional Superintendent Workshop/Moghalpura Computerized Reservation System Name of Divisional of Pakistan Railways with number of Station: Karachi-4 |Quetta-2 |Sukkur-8 |Multan-6 | |Karachi City |Quetta |Sukkur |Bahawalpur | |Karachi Cantt |Sibi |Rohri |Multan Cantt | |Drigh Road | |Sadiqabad |Khanewal | |Hyderabad | |Rahim Yar Khan |Chichawatni | | | |Khanpur |Sahiwal | | | |Larkana |Shorkot Cantt | | | |Nawab Shah | | | | |Mehrabpur | | Lahore-10 |Rawalpindi-4 |Peshawar-4 | |Lahore Cantt |Rawalpindi |Peshawar | |Lahore ( HQ ) |Jhelum |Attock City | |Gujranwala |Lalamusa |Jahangira | |Gujrat |National Assembly ( ISLD ) |Nowshera | |Narowal | | | |Sialkot | | | |Raiwind | | | |Okara | | | |Pattoki | | | |Faisalabad | | | Freight Traffic

Vision Statement of Freight Business Unit: A progressive freight transport organization operated by professional management and competent staff committed to provide reliable, competitive, safe economical service of recognized standards to its customers. Organization Set-Up: The Freight Business Unit is managed by Additional General Manager, who is assisted by heads of the various Freight Department viz. , Chief Commercial Manager, Chief Marketing Manager, ( Marketing of Freight Service ) Chief Traffic Manager ( Dry Ports ), Deputy Chief Mechanical Engineer/Wagons and Deputy Chief Operating Superintendent ( Locomotives). Performance of Pakistan Railways Year |Route Kilo-metres |Number of |Freight carried |Freight Tonne |Locomotives (Nos) |Freight Wagons | | | |Passengers carried|(Million Tonnes) |Kilometres | |(Nos) | | | |(Million) | |Million) | | | |1980-81 |8,817. 33 |123. 00 |11. 00 |7,918 |960 |36,248 | |1981-82 |8,774. 87 |120. 00 |11. 00 |7,067 |963 |36,213 | |1982-83 |8,774. 87 |123. 00 |12. 00 |7,323 |979 |35,990 | |1983-84 |8,774. 87 |107. 00 |11. 0 |7,385 |943 |35,782 | |1984-85 |8,774. 87 |95. 00 |11. 00 |7,203 |916 |35,341 | |1985-86 |8,774. 87 |83. 00 |12. 00 |8,270 |879 |35,237 | |1986-87 |8,774. 87 |78. 00 |12. 00 |7,820 |837 |34,867 | |1987-88 |8,774. 87 |80. 00 |12. 00 |8,113 |806 |35,929 | |1988-89 |8,774. 87 |84. 70 |10. 3 |8,364 |773 |36,249 | |1989-90 |8,775. 00 |84. 60 |9. 30 |7,226 |768 |35,842 | |1990-91 |8,775. 00 |84. 90 |7. 72 |5,709 |753 |34,851 | |1991-92 |8,775. 00 |73. 30 |7. 56 |5,962 |752 |30,369 | |1992-93 |8,775. 00 |59. 00 |7. 77 |6,180 |703 |29,451 | |1993-94 |8,775. 00 |61. 2 |8. 04 |5,938 |676 |29,228 | |1994-95 |8,775. 00 |67. 70 |8. 11 |6,711 |678 |28,561 | |1995-96 |8,775. 00 |73. 65 |6. 85 |5,077 |622 |26,755 | |1996-97 |8,775. 00 |68. 80 |6. 36 |4,607 |633 |25,213 | |1997-98 |8,775. 00 |64. 90 |5. 98 |4,447 |611 |23,843 | |1998-99 |7,791. 0 |64. 99 |5. 45 |4,330 |596 |23,893 | |July-March | | | | | | | |1999-2000 |7,791. 00 |49. 20 |3. 78 |2,890 |582 |22,247 | Source: Ministry of Railways Source: Ministry of Railways[pic] Corporate Profile: There are 200 Freight Stations on the this system with 12,000 personal dedicated to provide service to the clients. The Freight Business Unit serves two major Sea Ports, Kiamari and Bin Qasim.

Some of the major commodities that are handled include PTA ( Chemical for Rayon Manufacturer): Petroleum Oil and Lubricant (POL), Wheat, Coal, Fertilizer, Rock Phosphate, Cement, Sugar, Oil seed Containers and Goods for Transit to Afghanistan. Corporate Direction: The Freight Business Unit is a customer oriented department. Its pricing policy is client friendly. All possible efforts are made to reduce cost of transportation and increase revenue through efficiency, innovation and modernization. It proudly serves as the national flag carrier in times of peace, war and calamity. Pricing Policy: Pakistan Railways moves cargo on rails at a lesser cost in fuel spent in moving the same cargo by road. The organization by reason of this advantage is able to formulate its pricing policy to the maximum advantage allowable to the customer and the organization.

The pricing policy of Railways is that all the commodities be charged on differential basis according to the principle of “What each type of traffic can bear” The rate structure of Pakistan Railways is designed to fix an upper limit while taking into account the basic cost incurred in transport value of commodity, its loadability, susceptible to damage and pilferage along with various other factors. Promotional reduced rates are quoted to provide incentive to move the commodities by Rail of Road. Seasonal reduced rates are quoted to attract the commodity. Dry Port over the System: The containerization of cargo and the establishment of Dry Ports were the steps that further facilitated multimodal movement of goods. Cargo Express:

A Cargo Express Service introduced Since 1974 is now running daily for transportation of general cargo from Karachi City to Badami Bagh / Lahore and Vice Versa. This cargo express has been re-structured with High Capacity and High Speed Wagons along with terminal facilities to increase the present load of 1000 tones to 1600 tonnes A Similar Cargo Service has been initiated between Faisalabad Multan and Karachi and vice versa. Presently, these services are being run five time a week. Concrete Sleeper Factories ( CSF ): Pakistan Railway own five concrete sleeper factories, located at Sukkur, Khanewal, Kohat Cantt. , Shahinabad and Kotri. The factory at Sukkur was established in 1967, first in the sub-continent. other four factories came up in 1979-80. 14 Persons are working in CSF / Organization. Pakistan Locomotive Factory, Risalpur The locomotive manufacturing factory was established at Risalpur in 1993 at a total cost of Rs. 2284 million including a foreign exchange component of Rs. 1469 million. It is a modern factory and is equipped with state of the art plant & machinery. This factory is spread over an area of 257 acres, out of which 100 acres are covered by the factory while on the remaining 157 acres is the staff colony. The design production capacity of the factory is 25 diesel electric locomotives per annum on single shift basis. The production capacity can however be increased by increased by introducing double shifts.

The technology for manufacturing of locomotives has been acquired from Hitachi Ltd. Japan, General Electric ( USA ) / Adtranz ( Germany ) and dalian Locomotive & Rolling Stock Works, China. The factory has achieved the design capacity of 02 locomotives per month in the on going project of 69 DE Locomotives. Pakistan Locomotive factory has so far manufactured 97 new Diesel Electric Locomotives of 2000-3000 hp for Pakistan Railways Besides manufacturing of new locomotives 26 overage Locomotives of 2000-2400 hp have also been rehabilitated by this factory. In addition to this, different spare parts of locomotives are also being manufactured on regular basis for use on Pakistan Railways.

The locomotives manufactured in this factory are successfully operating the important main line trains and their performance and reliability’s satisfactory. The factory has saved foreign exchange of Rs. 1392 million on account of local manufacture. Locomotive Rehabilitation Project Moghalpura, Lahore The Diesel Electric Locomotive is the main source of power Traction Service. The expensive unit can not be replaced so frequently. Rehabilitation of Locomotive increases its useful life manifold for further service with less amount of expenditure. On this basis, PR set up a Project in 1976 in the Moghalpura Workshops Lahore, for the Rehabilitation of aging D. E. Locomotives, giving them a new lease of life of 15-20 years. Railway Constructions Pakistan Limited (Railcop)

Railway Constructions Pakistan Limited ( RAILCOP), a subsidiary of Ministry of Railways was incorporated as a Public Limited Company in 1980 under the Companies Act 1913, with an initial investment of Rs. 0. 5 million. Due to progress in construction activities the turn over of the company is Rs. 775. 0 million during the financial Year 2007-2008. Pakistan Railway Advisory & Consultancy Services Limited (PRACS) Pakistan Railway Advisory & Consultancy Services ( PRACS ) is public Limited company, which was established in the year 1976 and registered under Company’s Act 1913 ( later on converted in to Companies Ordance 1984 ). Karakoram railway Pakistan awarded a Rs72 million (US$1. million) contract to an international consortium to carry out a feasibility study for establishing a rail link with China to boost trade relations between the two countries. The study will cover a 750-kilometre section between Havellian and the 4,730-metre-high Khunjerab Pass over Mansehra district and the Karakoram Highway. Havellian is already linked with the rest of the rail network in Pakistan; the Chinese will lay some 350 km of track within their own territory from Kashgar terminus up to the Khunjerab Pass, linking Pakistan with China’s rail network, largely following the route of the Karakoram Highway. By expanding its stake in Pakistan’s rail sector, China is poised to exploit the country’s advantageous geographical position – strategically located at the confluence of South, Central and West Asia.

Beijing’s involvement in several rail projects in Pakistan is motivated primarily by commercial considerations, but it also sees distinct advantages for its improved transportation and access to Central Asia and the Persian Gulf states. A reliable network of road and rail links can only ensure China’s access to energy-rich central Asia, serving it both commercially and strategically. In the first week of this month, Pakistan Railways and China’s Dong Fang Electric Supply Corp signed an agreement for establishing a rail link between Havellian and Khunjerab. Ingenieurgemeinschaft Lasser-Feizlmayr (ILF), a consortium of consultant engineers from Austria, Germany and Pakistan, is to submit its report to the Ministry of Railways in nine months. It is most likely that the distance between Havellian and Khunjerab will involve the construction of tunnels.

The ILF services encompass both the construction of new high-speed railway lines and the modernization of existing lines for standard-gauge and narrow-gauge railways in addition to tunnels. Pakistan Railways Crisis 1. A shortage of locomotives A shortage of locomotives has compelled Pakistan Railways (PR) to suspend more of its passenger trains. The number of daily suspensions is alarmingly high. Railways is finding it an increasing challenge to clear arrears of Pakistan State Oil for its fuel supply and pay staff salaries and pensions. It maybe recalled that the recent failure to pay salaries and pensions of PR staff led to countrywide protests with the train service throughout the country suspended.

President Zardari was compelled to hold an emergent meeting and direct a cash-strapped Ministry of Finance to release one billion rupees to enable PR to make payment to staff. The cause of the current state of affairs of PR is a continuous decline in income: during July-September 2011 PR income declined to 351. 5 million rupees from 427. 6 million rupees during the comparable period last year. This decline is premised on a range of factors that include outright theft of locomotives and expensive equipment from Railways workshops, mismanagement associated with heavier reliance on bailout packages from the government that the cash-strapped treasury finds increasingly difficult to extend and sustained failure to restructure and modernise PR operations.

Reports that a deal to purchase locomotives from a foreign country was compromised due to allegations of commission being sought, is symptomatic of the malaise that currently besets all our national institutions. A way out is for the cabinet and all ministries to meticulously adhere to the public procurement rules and not seek a way out by invoking the national interest clause contained therein. The latest proposal by the PR to resolve its financial woes is to seek an Expression of Interest (EoI) from the private sector to run its freight operations. Public-private partnership has been the strategy enunciated several times by President Zardari. However, the government has failed to provide an enabling environment.

At present, the federal government is heavily reliant on domestic borrowing to meet the needs of its burgeoning budget deficit, a need that has been exacerbated by the decision of our economic team to abandon the stalled International Monetary Fund programme and not seek another – a fact that has automatically led other bilaterals and multilaterals to suspend assistance for programme lending (budgetary support). Thus an enhanced borrowing from the private commercial sector, instead of from the State Bank of Pakistan (IMF condition for the stalled programme), has led to crowding . There is thus little likelihood that an EoI would be forthcoming anytime soon.

If one adds the ingredient of government’s continued engagement in pricing of the service provided by PR to this state-owned entity’s profile then it is a foregone conclusion that no one would be tempted to enter this arena. The blueprint for PR reforms and restructuring like other badly managed loss-making state-owned entities is available. 2. Financial crisis in Pakistan Railways KARACHI: The Ministry of Finance has asked the State Bank of Pakistan to hold the release of salaries and other payments Pakistan Railways causing further chaos in a department marred by corruption and irregularities. The present financial crisis under which the PR is not able to release salaries of thousands of employees and make payments for fuel consumed by passenger and freight trains is due to the holding of financial matters by the ministry.

For the first time, Railway has to make the payment of salaries through cash earnings in various divisions after severe protest by its employees who had not received their salaries for over 15 days, sources said adding that the Karachi Division has disbursed salaries through the three day earnings of around Rs30 million. The divisional administration, disbursed the salaries of staffs of various categories on July 15, 16 and 17 through stopping the submission of cash earnings in National Bank of Pakistan (NBP) for three days. “This situation has never happened in the railways because before the SBP released salaries and other payments even if the amount in the railways account was temporarily not sufficient,” they said. They also added that after the instruction of the ministry of finance that SBP will release the fund only if the railways account has the required amount of money, salaries and other payment have been severely disrupted.

Talking to Pakistan Today Pakistan Railways Workers Union Chairman Manzoor Razi, said “when the army, police, judiciary and even the assembly members are paid their due salaries without any delay despite of no earnings, why are the employees of PR, who earn almost Rs60 million daily for the country, not being paid their salaries. ” For the last one year, he said, SBP was releasing the required amount to the railways only after receiving the letter from the finance division in Islamabad, which caused no delays in payment, but at the same time some cheques issued to Pakistan State Oil and others were not honored. Though the PR was submitting almost Rs60 million daily in NBP, the PR account in SBP was showing only Rs30,000 currently. The involvement of the three organization including NBP, SBP and Ministry of Finance were creating hurdles in financial matters, he claimed.

He further demanded that the government should immediately release the announced bailout package of Rs11. 1 billion to PR besides disbursing the Rs15. 5 billion allocated in the budget. PR cheque issued to PSO bounced Minister for Railways Ghulam Ahmed Bilour, has warned that PR has only two days oil reserves to run passenger and goods trains. A cheque issued by the railways to Pakistan State Oil (PSO) has bounced and according to a letter sent by PSO to the Section Officer Finance Division Islamabad, on Tuesday, the total outstanding dues of PR to oil marketing company as on July 19, 2011, was Rs1. 091 billion. According to the letter, four cheques issued to PSO on July 5 and 8, amounting to Rs297. 157 million were yet to be cleared.

While PSO has supplied 3. 2 million Litres, High Speed Diesel and 40,000 Litres Kerosone Oil this month. ISLAMABAD: Besides inconveniencing travellers, Pakistan Railways’ (PR) present financial turmoil has also put vendors and shopkeepers at the Rawalpindi Railway Station in a fix. Ghulam Rasool, who has been running a general store outside the railway station for the last 12 years, told The Express Tribune his family is facing “their toughest days”. The reason is the staggering decline in the number of customers at his shop, following PR employee protests for their salaries and empty reassurances by the government-run company. He said days go by without any sale.

The present crisis may have adverse affects for the economy but it has also shattered hopes of many poor families whose bread and butter is attached with the rail service. Javed and Farman, two brothers who own a teashop at the station, said that for last two months they have not been able to meet their daily expenditures. “For us it is unbelievable,” said Javed, “the place used to be filled with people and now it’s deserted. ” The two have been running the refreshment centre at the main entrance of the station since 1992, but now they feel it’s time they close down. Standing at the station’s platform, Mehbool Elahi looked visibly disgruntled. “I have always loved to travel by train,” said Elahi reminiscing the times when he used to come at the platform with his father who worked at the very same station.

He said for him the present disorder in the rail service is “a real shocker” and has marred the charm of one of most busy railway stations of the country. The cab stand outside the station is now an empty plot, said Yousaf Khan, a taxicab driver, who used to wait for passengers outside the railway station. He said he goes wherever he can find passengers and that is anywhere but the railway station. Rawalpindi Railway Station was built in the 1880s by the government of British India to help facilitate trade. The service was also used for other economic and strategic purposes in the sub-continent. Published in The Express Tribune, December 1st, 2011 dministration of federal government and its head quarter is in Lahore. It is an important source of transportation throughout Pakistan. It carries millions of passengers throughout the country. It used to carry huge freight in Pakistan. This cheap and safe mode for passengers is now facing a number of issues. A number of services of Pakistan Railways have been cancelled, suspended or terminated and many more will be suspended in near future because of mismanagement and shortage of locomotives, fuel and money. The chapter of all major services, from Lahore to Karachi, has been closed. It is pertinent to mention that all AC services have been stopped.

The incompetent administration has failed to attain locomotives from any quarter of the world. Passengers are suffering due to mismanagement of administration. Pakistan Railways decision to suspend goods train service due to severe shortage of locomotives and fuel is another blow to this organization. It is now basically financially bankrupt organization. In other words it is on the verge of financial collapse. The political interference, nepotism, corruption, poor maintenance of tracks & bridges and mismanagement in almost every field are the major causes of failure of Pakistan Railways. Pakistan Railways purchased 69 completely built locomotive units from China under 2003 agreement.

These are about 37% cheaper than the European locomotives but considered to be faulty. It is stated that 32 of these have already been scraped. Dong Fang Electric Corporation has been severely criticized for producing low quality locomotives. The other viewpoint is that misuse of the machinery was the major cause of the failure of Chinese locomotives. According to Sheikh Rashid, the former railway minister, crankshafts of locomotives worth Rs10 million were damaged because of the use of substandard lubrication oil. It may be mentioned here that normally a locomotive consists of six traction motors while the Pakistan Railways is operating them with only three or four motors.

This is the major cause of mid-way breakdown of trains. The passengers, in such a case, have to wait for a long time till repair or replacement of faulty engine takes place. Naturally trains are too late and passengers can be seen sitting at platforms with their luggage. A number of trains lack facility of light at nights because of the failure of the generators and ill attitude of management. Another reason that prevents people to go by train is increase in corruption by the ticketing officials. The reservation of birth is an uphill task. There are complaints that reservation is confirmed after receiving bribe of hundred or more rupees by passengers.

Pakistan Railways is no more the best choice to travel for the passengers. Haji Ghulam Ahmed Bilour, federal minister for Pakistan Railways, is a very controversial figure. He is considered to be somewhat responsible for the deteriorating situation of Pakistan Railways. His viewpoint is that the whole railway system is obsolete. He complains that half of the total locomotives are out of order. Almost 86 % bridges are more than 100 years old. The trains, tracks and machinery are outdated or faulty. He says that Pakistan needs 25 to 30 engines annually. He is now making a plan to repair, hire or lease locomotives in collaboration with the private sector.

Moreover, he believes that a bailout package can be helpful to overpower the crisis. According to him delay in funds to Railways is the root cause of the crisis. He accuses the federal government for not releasing remarkable funds for the betterment of Pakistan Railways. All his plans may end in failure because of corruption in the management, financial problems, his ill-advised attitude and lack of vision. The efficiency of the railway minister is evident from its almost nil performance. He believes that two mafia gangs are very strong in Pakistan Railways but finds himself incapable to take any action against them. He seems to be too weak to solve the issues and problems faced by his ministry.

The Chief Justice has expressed his disapproval for the high-ups of Railways in the following comments: “Ninety metric tons of silver worth millions was sold for mere Rs28,000 as scrap, while a light bulb worth Rs60 is being purchased at Rs400, whereas absence of maintenance turned expensive locomotives into junk one by one, besides a Grade-18 officer, a blue-eyed boy of the railways minister, is promoted to hold a Grade-20 post of secretary purchase. ” In the words of Chief Justice “ the electricity wires meant for electric trains from Lahore to Khanewal have been stolen. ” Moreover, he observed that “tickets were sold in advance outside ticket counters and tickets were not available at railway stations. It is also in the notice of the apex court that land mafia has grabbed Pakistan Railways land in different areas of the country. He has already ordered the railways to approach the Sindh administration in this connection. Nonetheless, everybody knows the efficiency of the present Sindh government. Railways needed Rs2. 2 billion to pay the salaries and pension to its protesting employees but the government has not released enough money to overpower the deep financial crisis. The economy of the country is under severe pressure and the poor administration seems to be unable to solve the problem. The apex court has already remarked “Railways should take steps to make it functional as early as possible. Sheikh Rashid Ahmad, former railway minister, blames corrupt officers of the department for the present situation in Pakistan Railways. According to him only 156 locomotives out of 500 are in normal working condition. According to his statement 15,000 freight wagons are not plying in the country and the business has gone in the hands of the private sector. He claims that 200 coaches and several locomotives, imported from China, could have been manufactured in the local Carriage Factory in Islamabad. Due to imported coaches and machinery several labourers have lost their jobs or sent on forced leave. A limited number of loaders have been appointed by the administration on the platforms to carry the luggage of the passengers.

It is stated that a particular amount of money is received by the administration as a bribe from these poor loaders. In return they are allowed to receive hundred rupees from the passenger to carry the luggage. A private firm has been working under the contract to transport goods including medicines, carpets, furniture and electronic appliances through Pakistan Railways. The monopoly of this firm is an obstacle in the free trade of different goods. Pakistan Railways should create competitive atmosphere to provide the customers with more facilities. Pakistan Railways losses have reached billions of rupees. It seems difficult to bring trains back on tracks in the present circumstances.

The situation may not change unless corrupt high-ups are removed, suspended and dismissed from the services. To restructure and modernise Pakistan Railways under the present administration seems to be the dream of a mad man. Pakistan Railways is sinking in the sea of corruption as no serious efforts are being made to eradicate it from this department. Railway’s Future: ISLAMABAD – The Finance Minister Dr Abdul Hafeez Shaikh, Minister for Railways Ghulam Ahmad Bilour and Religious Affairs Minster Khurshid Shah on Thursday discussed a plan for the comprehensive restructuring of Pakistan Railway and hiring consultants to revive it. The meeting proved unfruitful as no concrete decision or proposal came out of it.

On the directives of Prime Minister Syed Yousaf Raza Gilani all three ministers sat together to come up with a solution for the recuperation of Pakistan Railways. They deliberated at length over the financial requirements of the Pakistan Railways, agreed to initiate action in this regard and discussed the restructuring process. Sources told Pakistan Today that another meeting would be held today in which different options for the revival of railway would be discussed. Pakistan Railway is facing a financial crunch and has demanded the release of funds approved by the federal cabinet in order to revive it. In the last few days due to shortage of fuel PR asked for Rs3. 5 billion to make payments to Pakistan State Oil (PSO) and other administrative expenditures. The finance ministry has released Rs2. 5 billion to railway to overcome the crisis for the time being. In a meeting on June 24 with Minister for Railways Ghulam Ahmed Bilour the Finance Ministry agreed to release Rs11. 5 billion by next month under bailout package approved by the federal cabinet in December last year. Pakistan Railways has demanded Rs11. 5 billion for maintenance and rehabilitation of railway out of which Rs6. 1 billion are to be spent on maintenance of 145 locomotives, Rs2 billion each on rehabilitation of tracks and coaches and one billion rupees are to be reserved for future use. Pakistan Railway has 550 locomotives out of which 360 are dysfunctional at the moment.

The finance minister, minister for railway, deputy chairman planning commission secretary finance, communication and other concerned officers would take part in today’s meeting. Recommendation: I recommend the Pakistan Railway to repair the old engines and carts and start them for passengers. Many of the engines stand workless. Government of Pakistan needs to provide the spare parts of and provide full environment to maintain the machinery. Government fix annual fund to the Pakistan Railway and decrease the extra expense of Pakistan Railways. Such as decrease the no of commeties,no of seniors etc. Repair tracks also. For recent condition of Pakistan Railway new engines not suitable of Pakistan Railways. These engines will increase the expenses of railways and railways already have sufficient budget to survive.

I suggest Pakistan Railway that “To provide a competitive, safe, reliable, market oriented, efficient and environment-friendly mode of transport. ” Conclusion Conclusion is that Pakistan Railway face full economy crisis. Our railway totally end they have no budgets to recover themselves. Its time to thinking Railways the economy power of a country if railway shutdown its mean the economy power of Pakistan shutdown. Reference 1. http://www. pakrail. com/ 2. http://www. aaj. tv/2011/10/pakistan-railway-crisis-sets-in-deep/ 3. http://www. privatisation. gov. pk/Transport/Pakistan%20Railways. htm 4. http://www. pakistantoday. com. pk/2011/07/financial-crisis-in-pakistan-railways/ 5. http://en. wikipedia. rg/wiki/Pakistan_Railways 6. http://pakrail. com/ybook2. pdf 7. http://www. pakistantoday. com. pk/2011/08/ministers-meet-to-discuss-railway%E2%80%99s-future/ 8. https://docs. google. com/viewer? a=v&pid=explorer&chrome=true&srcid=1xfki7d-sWgnqBIb1LbY6oCN1f0CLXJGnnzD4AxHYBZKToIG1kIyZsKkNswnK&hl=en_GB 9. https://docs. google. com/viewer? a=v&q=cache:bjyicYzRYjkJ:finance. gov. pk/survey/chapters/14-Transport%2520final08. pdf+economy+graph+of+pakistan+railways&hl=en&gl=pk&pid=bl&srcid=ADGEESjjamgmSzyT_iGYMDm_X0Ji-LzNXRTti4ze1HbFn6chvHbhuI0AQRiM0qn01cAuhLWuIna0kXqEzMzpvINke m5JKPEiAfg7TK2-40M39zV8htgbN4L_nis1mvEUUOFFy5vfyvum&sig=AHIEtbTuA7LHcLkCt0

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