Railways layoffs

The decision by Pakistan Railways to terminate 18% of its staff is a painful but necessary step in a broader reform agenda aimed at revitalising an organisation plagued by inefficiencies, mismanagement and loss-making operations. While such layoffs can be seen as a move towards fiscal prudence, the pressing question is what else needs to be done to transform Pakistan Railways into a self-sustaining and efficient entity.

The expectation that workforce reduction can provide a quick fix for systemic issues oversimplifies the complexity of organisational reform. Railways faces challenges that go beyond mere personnel numbers. The organisation has been hampered by decades-old infrastructure, outdated technology and operational inefficiencies. While removing a portion of the workforce may offer immediate financial relief in terms of reduced payroll expenses, it does little to address the underlying issues that have contributed to its historical losses.

For true reform to occur, Railways must undertake a comprehensive overhaul of its operational framework. This includes investing in modern technology, upgrading infrastructure and enhancing service delivery. Outdated signals and tracks have not only tarnished the organisation's reputation but have also posed risks to passenger safety. With the rising cost of air travel, Railways would have been primed to cash in if it had a reliable high-speed service. True that it requires infrastructure investment, but high-speed rail is usually not only profitable but also an engine of economic growth, as fast, reliable trains mean work commuters can live further from their workplaces, which would reduce urban rent prices while still encouraging tourist and business travel.

While the cost of new rail lines would be prohibitive for the government, a public-private partnership, if done transparently, could easily cover the cost in return for a share in a reliably profitable project.