Business

Pakistan Railways demands Rs5b to combat financial crisis

Pakistan Railways faces a Rs2b shortfall in first quarter of current fiscal year; last year's deficit was Rs36b.

Express November 19, 2010

Pakistan Railways has demanded that the federal government increase its overdraft by Rs5 billion as it is facing a major financial crisis.

Railways had to bear with a Rs36 billion deficit in the previous fiscal year while in the first quarter of the current fiscal year it is facing a Rs2 billion shortfall.

Pakistan Railways needs financial help on an urgent basis to run its business but the federal government has not yet approved any monetary assistance.

Earlier this week, train drivers of Pakistan Railways called off a strike after being given their salaries.

The employees had earlier protested over the non-payment of their salaries and had blocked a train at the Cantt Railway station in Peshawar.

Train employees of Lahore railway station had also gone on strike over the same issue. Passengers travelling by major express trains were stranded at the City railway station for hours after workers of the Railways Loco Shed went on strike in protest against non-payment of their salaries.

The worst affected were passengers of the Tezgam, Jaffer Express, Karachi Express and the Karakoram Express besides the Rawalpindi-bound railcar.

COMMENTS (2)

Interconnect | 14 years ago | Reply The sub-continent inherited railways from Britishers, which Indian part prospered, today India provide railway operation, management expertise, technology to the world. India today participates in international tenders of GCC countries, and many emerging markets. Pakistan Railways was as good as the Indian Railways. Instead of infusing tax payer money to the deficit of railway, for corruption in procurement, operation, mis-management. Railway Ministry should form a regulator, privatize the track which it can procure from China on the High Speed platform supplied on turnkey with no or nominal interest from EximBank in long term finance. The rolling stock which means engine, locomotives, train will be high speed to be used by the international company's which will be operators on the track which will be owned by the railways. This will immunise the Government to operate railways and provide deficit soar to the DFI's, and tax payers. Yet the public pay very high fares, and inconvenience. Rolling stock means train which will be financed from private investment internationally will operate freight, passenger trains of international standards, and will pay royalty on revnues, and track utilisation. The track will be licensed to number of operators to optimise operations. Signalling, telecommunications, security, surveillance are normal and will be tracked by satellite special meant to monitor security, surveillance on rails at nominal costs. The UIC international organisation of railways has railway policing, monitoring, surveillance system which should be deployed in Pakistan to curb accidents, terrorism. Reservations can be made on e-ticketing like airlines, and be made from anywhere like airline tickets from IATA travel agencies worldwide. Pakistani travellers can book tickets from anywhere in the world, by airlines or directly for their journeys. Speed of the High Speed Trains including the German technology Maglev, Japanese, European technology are well established. Pakistan future is investment on railways not aircraft which are already in huge surplus with the Emirates and the GCC countries which are hub. Pakistan should hand over PIA to any private airline and finish its debts. The first conference on High Speed Rail is on 7th December, 2010 in Beijing the first time from UIC member organised in Asia which is China. Pakistan should not miss this. Interconnect Partners may assist the Ministry of Railways for a visit at the august event participation and help Pakistan from its debts.

Rehan | 14 years ago | Reply Learn from some of the world's best operating railways like the Chinese/Indian Railways which are one of the largest employers of the world!

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