Financial crisis in Pakistan Railways

4
194

The Ministry of Finance has asked the State Bank of Pakistan to hold the release of salaries and other payments Pakistan Railways causing further chaos in a department marred by corruption and irregularities. The present financial crisis under which the PR is not able to release salaries of thousands of employees and make payments for fuel consumed by passenger and freight trains is due to the holding of financial matters by the ministry.
For the first time, Railway has to make the payment of salaries through cash earnings in various divisions after severe protest by its employees who had not received their salaries for over 15 days, sources said adding that the Karachi Division has disbursed salaries through the three day earnings of around Rs30 million. The divisional administration, disbursed the salaries of staffs of various categories on July 15, 16 and 17 through stopping the submission of cash earnings in National Bank of Pakistan (NBP) for three days.
“This situation has never happened in the railways because before the SBP released salaries and other payments even if the amount in the railways account was temporarily not sufficient,” they said. They also added that after the instruction of the ministry of finance that SBP will release the fund only if the railways account has the required amount of money, salaries and other payment have been severely disrupted.
Talking to Pakistan Today Pakistan Railways Workers Union Chairman Manzoor Razi, said “when the army, police, judiciary and even the assembly members are paid their due salaries without any delay despite of no earnings, why are the employees of PR, who earn almost Rs60 million daily for the country, not being paid their salaries.”
For the last one year, he said, SBP was releasing the required amount to the railways only after receiving the letter from the finance division in Islamabad, which caused no delays in payment, but at the same time some cheques issued to Pakistan State Oil and others were not honored.
Though the PR was submitting almost Rs60 million daily in NBP, the PR account in SBP was showing only Rs30,000 currently. The involvement of the three organization including NBP, SBP and Ministry of Finance were creating hurdles in financial matters, he claimed. He further demanded that the government should immediately release the announced bailout package of Rs11.1 billion to PR besides disbursing the Rs15.5 billion allocated in the budget.
PR cheque issued to PSO bounced
Minister for Railways Ghulam Ahmed Bilour, has warned that PR has only two days oil reserves to run passenger and goods trains. A cheque issued by the railways to Pakistan State Oil (PSO) has bounced and according to a letter sent by PSO to the Section Officer Finance Division Islamabad, on Tuesday, the total outstanding dues of PR to oil marketing company as on July 19, 2011, was Rs1.091 billion. According to the letter, four cheques issued to PSO on July 5 and 8, amounting to Rs297.157 million were yet to be cleared. While PSO has supplied 3.2 million Litres, High Speed Diesel and 40,000 Litres Kerosone Oil this month.

4 COMMENTS

  1. All has been digested by the minister. To camouflage himself he is crying to proof to be victim and innocent. If the Railways was a bad experience for him why he rechoosed it while the cabinet was reshuffled and he was asked to take the ministry of his own choice. Fact is that he should be taken up but very cunningly he is crying before any blame on him is imposed.

  2. minister should be changed.because he is creating hurdles he is not adroit at his work.and wanna run his own business of transport.the reason why he is in railways is that he just wanted to have a lucrative job which he is doing.

  3. I think all fault due to corrupted management Govt have to opportunity to new graduates

Comments are closed.