After discussing numerous restructuring proposals and plans, the Cabinet Committee on Restructuring (CCR) on Friday decided to provide financial assistance to Pakistan Railway (PR) to sustain its operations. An official source said that the Ministry of Finance had been opposing giving direct financial assistance to Pakistan Railway for over a year and wanted implementation of structural reforms instead.
However, some of the ministers showed concerns that half-baked reforms would further complicate matters therefore, steps should be taken to provide immediate financial assistance to PR.
The meeting vowed to address all concerns and requirements of PR. It is expected that due to addition of locomotives, improvement of tracks and rolling stock and enhanced credit line from PSO, PR will again become a viable entity and provide reliable service to people of Pakistan. The Ministry of Railways was directed that the discontinued services of freight and passenger should be fully restored in the shortest period of time. CCOR also decided to further strengthen the Board of PR which will be notified within one month. The board will have representation from all four provinces and will include professionals and experts of railways and a strong mix from private sector. The executive committee of PR is also being strengthened to further improve management. The CCOR reiterated that the government was fully committed to reinvigorate PR to provide reliable, competitive and economical service of high standards to the people. All members of CCOR showed satisfaction in the comprehensive plan to restructure PR to play its vital role in economic growth of Pakistan and service to the people of Pakistan. The restructuring of PR shall be fast tracked to ensure implementation in the shortest period of time.
The Cabinet Committee decided that Rs6.1 billion would be provided for rehabilitation of locomotives through local banking consortium and Rs4 billion would be provided for improvement of tracks and rolling stock through re-prioritization of Public Sector Development Program (PSDP) for the current fiscal year. The credit line from Pakistan State Oil (PSO) would be enhanced to Rs2 billion to ensure smooth supply of oil to PR. Furthermore, efforts would be made to release Rs15 billion, which have already been allocated for PR through PSDP, as soon as possible.
Sources said that Financial Ministry wanted to put in place checks and balances on the money provided by the government to PR as without implementing structural reforms the money would only provide a temporary fix. Source said that PR was seeking money urgently for rehabilitating its locomotives, since the ministry did not have the required expertise to decide the actual amount, it decided to arrange financing from local banks. The ministers were concerned about long delays in train arrival and departure and closure of some trains, as most of people in rural areas are dependent on trains. They wanted to take immediate steps to rehabilitate the railways before the Eid season. According to an official statement the meeting was chaired by Finance Minister Dr. Abdul Hafeez Shaikh and attended by Ministers for Railways, Law, Privatization and Deputy Chairman Planning Commission besides other officials. The meeting deliberated on all issues of revival of railways and decided to address on an immediate basis all financial needs of Pakistan Railways (PR).
With whose money?
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