Proposal for revamping Railways submitted

By Abdul Qadir Qureshi
(Pakistan News & Features Services)

A proposal has recently been submitted to Dr Ishrat Husain Sahib, Advisor to Prime Minister on Institutional Reforms, Government of Pakistan, for investment in Pakistan Railways through Public Private Partnership. 

In view of the deteriorating condition of Pakistan Railways and increasing trend of train accidents the Prime Minister of Pakistan, Imran Khan, had entrusted Dr Ishrat Hussain to devise and prepare a comprehensive restructuring plan to make the organization a profitable department through public-private partnership. 

Mir Mohammad Khaskheli, Member, FPCCI Standing Committee on Railways, has submitted a comprehensive paper in this regard, a copy of which was also obtained by PNFS. 

In what has been described as an essential policy paper, it appears to be precisely well timed and could be extremely useful for future strategy of the government for the development of sustainable rail system in Pakistan. 

The paper gives an insight into the historical background besides critically analyzing the performance and financial aspect of Pakistan Railways. The gist of analysis and recommendations made in the paper are based on in-depth study of 39 years of public sector organizations and input of very senior officers of Pakistan Railways. 

As outlined in the paper, Pakistan Railways has been currently facing serious financial crisis due to circumstantial historic debt, exorbitant escalating fuel prices, pay and pension, inadequate running of freight trains, loss making passenger business, manufacturing and service units. 

In fact, the huge financial deficit had driven the Pakistan Railways to a fatal bankruptcy and government of Pakistan has been further burdened with an additional financial liability. 

It has been noted in the paper that the persistent losses incurred incur didn’t arise entirely from any public service function but gross mismanagement, incompetence and political interference also contributed significantly in mounting financial losses and escalating debt. 

The paper has pointed out that Pakistan Railways has been unable to rise up to the public’s expectations in terms of desired quality standards and efficiency of service, having failed to develop an entrepreneurial culture with respect to management, accountability for performance, assessing and reacting to the issues of tariff and fares when compared to other modes of transport, and in being innovative and capturing new opportunities. 

Mir Mohammad Khaskheli, well versed with the organization’s functions because of his long stint there, reckoned that Pakistan Railways’ ability to transform itself from non-profit making agency of government to a profitable entity depended mainly on its capacity to respond effectively to important structural challenges and the transformation required among other things, a basic change in the driving policy of rail infrastructure and operation. 

“Its adoption of public and private sector partnership, customer driven, commercially viable and market oriented system to make this national organization to function on sustainable and financially viable footings to maintain sustained economic growth,” he wrote. 

He regretted that despite of tall claims of improvement in the performance of department by the top management more than 100 train accidents occurred during the year 2019 alone.

“Huge investment is required for the development in rail infrastructure and safety of train operation. This requires complete replacement of existing obsolete signalling and communication system, rehabilitation of old aged bridges, up-gradation and standardization of railway track & rolling stock and invigorating maintenance facilities in major shops/sheds and depots,” he suggested. 

“It seems difficult to revive the past glory of Pakistan Railways and bringing trains back on tracks in the present circumstances. The situation may not change until unless a high powered honest and dedicated team is entrusted with the task to undertake important structural changes that should make the best use of its assets efficiently and wisely to revitalize this largest vital public sector organization,” he added. 

“The Government of Pakistan may invite and offer the private sector for the development of railway’s core functions to put the organization on commercially viable footings through public-private partnership,” Mir Mohammad Khaskheli suggested. 

“The objective to revive Pakistan Railways under the CPEC-related projects is praiseworthy; yet they can only scratch the surface of the dismal situation of PR which needs both institutional reforms and instrumental investments. On the institutional side one change that should take place is the broader representation in the Railway Board in existence since 1959 and reconstituted in 2015 for more informal decision making,” he continued. 

“In addition to the representatives from Ministry of Railways, Communication and Finance; representation from Ministry of Economic Affairs & Statistics, Law & Justice, Planning & Development and FBR is very vital to obtain more significant input and guidance on bilateral, multilateral and technical partnership issues,” he concluded.