PR faces backlash over closure of subsidiaries

BoDs urges minister for Railways to reverse decision


Our Correspondent May 01, 2025

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RAWALPINDI:

The Boards of Governors of two major Pakistan Railways subsidiaries—Pakistan Railway Advisory and Consultancy Services (PRACS) and Pakistan Railway Freight and Transport Company (PRFTC)—have formally objected to the government's decision to shut them down due to an intense financial crisis. The boards have urged the Federal Minister for Railways to reverse the closure decision.

A delegation representing the boards of both companies is expected to meet with the federal minister for Railways, the secretary Railways, and the head of Pakistan Railways next week. For these meetings, the Boards of Governors have prepared a legal charter of demands.

Following the termination of 280 employees from PRACS, an additional 80 staff members from PRFTC have also been laid off, with offices of the latter company now locked.

The dismissed workers have formed an action committee and are preparing to challenge the minister's decision in court through constitutional petitions.

Sources indicate that the Boards of Directors of both PRACS and PRFTC are firm in their legal stance. During a recent board meeting, it was resolved to seek a meeting with the railway minister to highlight the legal and regulatory aspects surrounding the closure.

Employees of the shuttered companies have warned of intense protests if the offices are not reopened immediately.

They are calling on the railway minister to issue urgent directives to divisional officers to unlock the sealed offices.

Meanwhile, dismissed employees continue to visit the offices in pursuit of their dues, but report no response from authorities.

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