Finance ministry approves Rs10.2b grant for Pakistan Railways
Sources said the ministry approved the grant after senior government officials intervened.
Four billion rupees will be provided to Pakistan Railways from the Public Sector Development Programme (PSDP) for the maintenance of railway tracks and Rs6.1 billion will be provided through a banking consortium for the repair and maintenance of locomotives.
Earlier, the finance ministry had refused to release the funds until the railways presented a clear plan to spend the money.
Pakistan Railways, the country’s only rail service provider, is passing through one of the worst financial crises in its history. The federal cabinet had approved a Rs25 billion bailout package in December 2010. In June, the finance ministry had promised it would release the funds in July, but has yet to do so.
(Read: The state of Pakistan Railways)
The Railways currently only meets 20% of its operating expenses from its ticket sales and other revenues. It loses approximately Rs36 billion a year.
(Read: The state of Pakistan Railways - II)
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The government is killing us, I can see all the TAX payers are bleeding but they are frozen. Let’s hope (again), that that some money will be used for development. May Ministry people got enlightenment and do something honestly in rest of their life. Some ideas that they can implement in order to enhance their capacity and retain (too many) redundant workers, if they are honest. 1. Improve Quality of Service and facilities 2. Increase frequency of Long route services 3. Introduce new partners for short route and increase competition with good regulations. 4. Introduce new tracks, if possible different from conventional which heavy maintenance. 5. Outsourced services such as cleaning, kitchen, railway stations, shops etc. 6. Many more
Good luck. Remember Journey through train is most safe and pleasure ride.
I don't understand why cannot we learn from idea. I believe that we should give a detail thought to Indian reforms for Railway; that was indeed a massive turn around.
How can they be profitable if revenue is only 20% of operating expenses? Any amount of bailout will be unsuccessful.
All the public organization which were suppose to support government are being burden on the government, these billions of money are not other than the tax we pay and yet we are humiliated at every step of life in Pakistan. Government has find an easy of corruption in the name of bail out packages.
@ hassan Rail is only profitable in india and rest of the countries are running the railways in deficit. You can not imagine how important the financial aid is for railways at this point of time. if otherwise, the rail in pakistan would become a story of past.... Best of Luck Pakistan Railways..........
This money will evaporate.
There is massive bad governance in Railway.
Money should not be provided.Railway should be privitised
i agree with the privatization factor.. for years now the govt funds have failed to bring pakistan's railways on track, instead its only gotten worse.. it is time for a reliable organisation to step in and take the locomotives for service, just like in the case of "PTCL" and "pakistan steel.." sure the prices will jump a little but there will also be more reliability, product quality and value for money which will subsequently become prospects for research and development :)
In all the world railway is profitable and increasing day by day. But why is it loss in Pakistan??? The reason for this much loss is workers Dishonesty to work and Mainly CORRUPTION........... Instead of giving public money to railway.....Its better to privatize partly as the PTCL............. anyone can see the difference in PTCL now and before.........................