Profitless venture: Railways leasing land at throw-away prices

Report reveals that govt institution has been allotting the land at prices 10 times lower than market rates.

ISLAMABAD:

In yet another case of inefficiency displayed by Pakistan Railways, an official reply in parliament revealed that the government institution has been leasing land at a rate 10 times lower than local market rates over the last three years.

Around 3,600 acres have been leased out by the railways for around Rs315 million per annum to 769 different leaseholders for agricultural purposes. It also leased out over 105,000 square yards for commercial purposes for Rs12 million to some 211 lessees during the same period, again, at a rate far lower than the market price.

The reply was submitted in the National Assembly in response to a query by Muttahida Qaumi Movement parliamentarian Sheikh Salahuddin.

The railways minister confirmed to The Express Tribune that the land leased out during the last three years was done so at low prices. However, he categorically said, “An agreement with lessees is reached through open tenders; hence we cannot cancel these agreements at any cost”. In reply to a question, he said “We will review our tendering policy to make the railways a profitable organisation.”

Former railways minister Sheikh Rashid said “I will not comment till I go through the details.” However, while speaking to a news channel, he was of the view that the matter may be taken up by the apex court, which has already taken suo motu notice of railways corruption and inefficiency.

A lessee’s dream come true

The report stated figures for land leases per annum in Multan, Lahore, Rawalpindi, Peshawar, Mughalpura, Sukkur, Karachi and Quetta.

In Multan for example, a man identified as Amjad was leased a total of 71.8 acres for the paltry sum of Rs5,600 per annum over the last fifteen years.

In the 2008-2009 period, Pakistan Railways leased 60 acres of farming land in Rawalpindi, where land market prices are considerably higher, for the sum of Rs61,000 per annum to ten different people.

In Quetta, Lalamusa, Sargodha, Mardan, Hyderabad and Chaman, 50,000 square yards of land was leased for Rs0.4 million for a total of 99 years in 2009-2010.

edited by Heba Islam

Published in The Express Tribune, November 23^rd, 2011.