The dying Railways

Pakistan Railways was an important means of transportation around the country. It was operating in profit, with a boom in its services. It was a proud symbol of our economy. According to the 2011 yearbook of Pakistan Railways, it provides cheap sources of travelling. But unfortunately this cheap and safe source is now facing serious issue. In 1950, Pakistan was known as the Pride of Asia as it was the first to use diesel engines in trains. Railways was considered Pakistan’s richest sector, assets-wise.
PR’s 50 percent of earnings is from passengers rent, 31 percent from cargo services, while there are 4 trains and 12000 employees for cargo services. There were once 86 percent of journey and cargo services offered through trains which have now reduced to 12 percent. Out of 39000 hectare surplus land, PR has 20357 hectare unfertilised land. In Texla, Punjab, the Ministry of Education has taken land from Railways on lease for 1 Rs per square foot.
Other public and private sector have Rs 1 billion and 38 crores owed to Railways. During July 2007 to Feb 2009 different equipments and materials of worth 32 crore 90 lakh have been stolen. It is losing Rs 34-35 lakh per hour. From last three years (2009-11) PR had to bear a loss of Rs 56 billion. In National Assembly, the Railway Minister acknowledged that 4,231 hectares of land have been illegally occupied.
The basic reasons behind these crises are shortages of locomotives, fuels and mismanagement, political interference, nepotism, corruption, poor maintenance of tracks and bridges. To overcome these crises the Build-Operate-Transfer (BOT) formula should be used. Under this concept, the government should make a long term contract with China or Russia to build the structure and operate the system for a fixed time of period, cover the investment cost, earn profit and then transfer to the government.
Railways should create competitive atmosphere to provide the customers with better facilities. PR is sinking in the sea of corruption. First of all, PR needs funds. Secondly, the illegally occupied land should be utilised by giving it on lease to the farmers. Like PTCL, it should reduce the number of employees. PR’s infrastructure is inappropriately huge with respect to its size of network. If it has trained employees, an independent entity and there is no political interference, then it’s ready for BOT programme or public-private partnership. And then its restructuring plan will directly boost up the economy.
BUSHRA FAROOQ, KANWAL FATIMA
Lahore