Prime Minister Yousaf Raza Gilani on Thursday directed the finance minister to immediately recommend professionals for formation of a new PIA board of directors and appointment of chief executive officer (CEO) and chief financial officer (CFO) for restructuring Pakistan Railways in order to improve the performance of both state-owned entities.
Chairing two separate meetings with the officials of Pakistan Railway (PR) and PIA, Gilani directed Finance Minister Abdul Hafeez Sheikh, who is also heading the Cabinet’s Committee on Restructuring (CCOR), to take measures for streamlining the restructuring process to improve the efficiency of both organisations. The railways CEO would replace the railway chairman and would strive to run railways on business lines.
As a follow up to the directions passed by the president, Gilani directed the Finance Division to guarantee timely payment of salaries and pensions to railways employees each month.
The PM was informed in the meeting that the financing agreement with the banking consortium would be signed within a week for funding the rehabilitation of 96 locomotives at a cost of Rs 6.1 billion.
It was decided in the meeting that railways sections that included Sibbi-Quetta, Quetta-Taftaan, Bahawalnagar-Fort Abbas and Narowal-Chak-Amro and other all non-economical routes would be closed
after a detailed report by the railways officials on the matter.
About the long-standing demand of railways on provision of diesel for its locomotives, it was decided that supply would be ensured and the credit limit from the Pakistan State Oil (PSO) would be doubled. The Railways and PSO were in process of finalising and signing of a long-term fuel supply agreement and the PR had asked the government to increase its fuel ceiling from one million to two billion barrels.
The meeting was told that the Federation of Pakistan Chambers of Commerce and Industries (FPCCI) would start freight operations per public-private partnership from December 25.
Non-stop Business Express would be operated between Lahore and Karachi to provide Rs 1.15 billion in annual revenue to the railways.
Another train, Shalimar Express, would be operated between Lahore and Karachi under public-private partnership. The prime minister directed the railways minister to monitor progress of rail operations on a daily basis, as he himself would chair a meeting every month to review the programme for railways’ turnaround.
He also directed to convene a special CDWP meeting within the next two weeks to reprioritise PSDP-funded projects of Pakistan Railways.
It was also decided to form an asset management company for managing non-core assets of PR, including land. The committee would be responsible to convert and earn revenue from the deserted property of PR.
PIA: In a second meeting that reviewed PIA’s progress, the government agreed to help the airline provided it exhibited tangible improvement in its performance.
The PM also constituted a committee headed by the finance minister and including cabinet and defence secretaries and the PM’s principal secretary that would submit a report in a week giving a roadmap for turnaround in PIA.
Gilani said he would soon preside over a meeting to finalise the approval of the members of board of directors per recommendations of CCOR. The restructuring would incorporate professionalism, autonomy to the board of directors and minimal bureaucratic red tape in decision making to improve the efficiency of the national flag carrier.
PM swings into action to rescue Railways, PIA
