Railway in a shambles

.Railways posts Rs2.4bn surplus against Rs27.4bn dues — reform now unavoidable

Pakistan Railways has long survived on nostalgia. It can no longer survive on arithmetic. The revelation before the National Assembly's Standing Committee on Parliamentary Affairs should alarm even the most complacent policymaker. Against an operational surplus of Rs2.4 billion, Pakistan Railways faces immediate obligations of Rs27.4 billion.

To its credit, the department has cleared Rs5.622 billion in commutation payments and Rs1.103 billion in leave encashment, signalling some financial discipline. But settling past dues does not fix a broken business model. When liabilities tower over surplus by more than tenfold, incremental adjustments amount to little more than accounting cosmetics. For years, successive governments have treated the railways as a political instrument rather than a commercial enterprise. Routes are opened or retained for optics.

Recruitment is influenced by patronage. And investment decisions are reactive, not strategic. The irony is that rail remains, globally, the most efficient mass transit system - cheaper than road and far more environmentally sustainable. In Pakistan, however, freight has steadily migrated to highways, while passenger services bleed quietly. The institution's vast land assets sit underutilised, mismanaged or encroached upon. Reform is discussed every few years, but rarely executed with seriousness.

Restructuring must begin with honesty. Commercial operations should be separated from social obligations. If the state wishes to subsidise certain passenger routes for public welfare, it should do so transparently through the budget - not by forcing the railways to absorb the losses.

Freight services must be modernised and digitised. Asset monetisation must move from slogan to strategy. Above all, depoliticisation is essential. Professional management and performance benchmarks are prerequisites for survival. Pakistan Railways does not need another bailout dressed as reform. It needs a comprehensive overhaul grounded in economic reality. A country of over 240 million cannot afford a railway system that struggles to carry its own weight.