Rs40b Railways overdraft be forgiven: NA panel
The committee gives a 10-point charter of demand to govt for PR’s financial bailout.
ISLAMABAD:
The National Assembly’s Standing Committee on Railways presented on Tuesday a 10-point Charter of Demands (CoD) to the government for approval, including waiving off the Rs40 billion overdraft with the State Bank to bail out Pakistan Railways (PR) from its worst financial crunch.
The CoD was discussed and forwarded to the government at the committee meeting with MNA Ayaz Sadiq in the chair.
The committee was informed by PR officials that the ministry does not even have funds to purchase fuel on a daily basis. The committee urged the government to release Rs11 billion as announced by Prime Minister Yousaf Raza Gilani for PR.
It demanded of the government to either waiver off Rs40 billion overdraft with the State Bank or convert the amount into equity of the government of Pakistan.
The second demand of the committee was for the government to take over the liability of outstanding foreign loans against PR – currently Rs26.6 billion – as well as the pension liability – worth Rs6.50 billion annually – as in the case of the Pakistan Army and all other federal government departments.
The committee also demanded that separate accounts for salaries, currently at Rs12.5 billion annually, as well as for fuel, currently at Rs.12.6 billion annually, be 100 per cent supported by the government through guaranteed releases.
The NA panel also demanded the induction of new locomotives on an emergency basis through a transparent procurement system based on the life-cycle cost and maintenance contract.
The committee also sought for a modifying accounting system as per international standards for business organisations, adding that divisions and workshops should have separate balance sheets to gauge their performance.
The NA panel in its demands also urged for a transparent selection of the Chief Executive Officer (CEO) if the re-structuring process is to go ahead.
The committee urged that the CEO should be selected from Railways and by the Board of Directors or any high level committee comprising personalities with known integrity, aboveboard honesty and competence.
The committee stated that the continuity of CEO should be dependent upon performance and any Divisional Superintendent who fails to perform should be discontinued.
Lastly, the committee urged considering the option to restore the organisational structure and autonomy of railways existing prior to 1970.
Secretary Finance informed the committee that IMF has suspended its assistance programme and other donors are also reluctant.
He said that loans worth Rs3.5 billion have been arranged for PR from the Development Financial Institutions. However, the committee chief said that PR is already under the serious burden of loans and additional loans would only cause complications. The committee also expressed its concerns over the formation of the Railways Board and directed that board must comprise competent and deserving people.
Published in The Express Tribune, February 16th, 2011.
The National Assembly’s Standing Committee on Railways presented on Tuesday a 10-point Charter of Demands (CoD) to the government for approval, including waiving off the Rs40 billion overdraft with the State Bank to bail out Pakistan Railways (PR) from its worst financial crunch.
The CoD was discussed and forwarded to the government at the committee meeting with MNA Ayaz Sadiq in the chair.
The committee was informed by PR officials that the ministry does not even have funds to purchase fuel on a daily basis. The committee urged the government to release Rs11 billion as announced by Prime Minister Yousaf Raza Gilani for PR.
It demanded of the government to either waiver off Rs40 billion overdraft with the State Bank or convert the amount into equity of the government of Pakistan.
The second demand of the committee was for the government to take over the liability of outstanding foreign loans against PR – currently Rs26.6 billion – as well as the pension liability – worth Rs6.50 billion annually – as in the case of the Pakistan Army and all other federal government departments.
The committee also demanded that separate accounts for salaries, currently at Rs12.5 billion annually, as well as for fuel, currently at Rs.12.6 billion annually, be 100 per cent supported by the government through guaranteed releases.
The NA panel also demanded the induction of new locomotives on an emergency basis through a transparent procurement system based on the life-cycle cost and maintenance contract.
The committee also sought for a modifying accounting system as per international standards for business organisations, adding that divisions and workshops should have separate balance sheets to gauge their performance.
The NA panel in its demands also urged for a transparent selection of the Chief Executive Officer (CEO) if the re-structuring process is to go ahead.
The committee urged that the CEO should be selected from Railways and by the Board of Directors or any high level committee comprising personalities with known integrity, aboveboard honesty and competence.
The committee stated that the continuity of CEO should be dependent upon performance and any Divisional Superintendent who fails to perform should be discontinued.
Lastly, the committee urged considering the option to restore the organisational structure and autonomy of railways existing prior to 1970.
Secretary Finance informed the committee that IMF has suspended its assistance programme and other donors are also reluctant.
He said that loans worth Rs3.5 billion have been arranged for PR from the Development Financial Institutions. However, the committee chief said that PR is already under the serious burden of loans and additional loans would only cause complications. The committee also expressed its concerns over the formation of the Railways Board and directed that board must comprise competent and deserving people.
Published in The Express Tribune, February 16th, 2011.