Train to nowhere

Karachi's electric utility, K-Electric, cut off Pakistan Railways power supply briefly after a dispute between the two organisations over pending dues had escalated. The strategic national institution has been in dire straits for decades. It is plagued by severe mismanagement, poor infrastructure and mounting debts. To K-E alone, it owes around Rs70 billion. The institution is suffering from the same issues plaguing other strategic national institutions such as Pakistan Steel Mills and Pakistan International Airlines. Chronic mismanagement, overstaffing with political appointees and a general disregard for efficient practices have all but destroyed these institutions financially. If we talk about the country's only rail service, it is still using the same infrastructure laid down during the days of the British Raj a century or more ago. Over the past 75 years or so, the management has failed to upgrade its infrastructure and adopt modern technology.

The primary factor behind the financial woes of the institution is its outdated infrastructure, which is both inefficient and prone to frequent breakdowns. The lack of modern technology and maintenance has rendered the rail network less competitive compared to other modes of transportation. Investing in rehabilitating tracks, upgrading trains and enhancing signalling systems would improve efficiency and reduce the risk of accidents that have plagued the sector for years. The government also needs to rethink its approach to subsidies and debt. While subsidies have historically been used to keep services affordable, they have often been a source of financial strain. The focus should be on making Pakistan Railways self-sustaining by gradually reducing reliance on public funding and encouraging private investment. Strategic debt management is essential. While the financial crisis may seem daunting, it is not insurmountable with a restructuring of the institution and its workforce.