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Pakistan Railways

Introduction

Based on the success of the Japanese Railways model, Pakistan Railways (PR) is
currently following a similar strategy of converting its non productive assets into revenue
generating and land mark projects. For this purpose PR established the Directorate of
Marketing which works directly under the guidance of the Ministry of Railways to
launch new business ventures using surplus Railways assets coupled with capital
investment fully provided by the private sector. The objectives of this Directorate are,
through public-private participation, to conceive, plan, finance and manage commercial
projects which shall generate additional revenue so as to help pay off pay PR’s long out
standing over draft with the State Bank as well as to fund developments and upgrading of
core operations. The Directorate aims at removing the need for Federal financial by being
the first public sector organization to be financially viable and profitable in the long run.

The Vision

Promoting domestic and foreign investment to enhance Pakistan's


international competitiveness and contribute to economic and social
development

The Mission

To implement Policy:
Simplify procedures to attract investment

To promote investment for profits:

Promotion (proactive, cost effective and responsive)


Facilitation (account executives to provide customized assistance
to investors)

HERARCHY

BRIEF HISTORY OF PAKISTAN RAILWAY;

In 1861 the first railway track was laid down between Karachi and Kotri by a
private firm. Then the govt. of India took over the task to expend and organize the
network of railways. At the time of partition, there were 9 systems in India, of which
only 2 were operating in Pakistan i.e. North Western Railway and Bengal Assam
Railway. The total length of railway track at that time was 66206 k.m. out of which
Pakistan inherited 11197-k.m.long track, which formed17% of the total rout
coverage. Pakistan share of locomotives was 15.6%, 17.65% in coaching vehicles
and 16.4% in freight wagons. The total length in West Pakistan was 8553 k.m.

At the time of portion of entire railway system i.e. railway lines, engines and coaches
were much worn out due to their excessive use in the Second World War. Therefore,
Rs. 58 million were spent by the govt. of Pakistan on the rehabilitation and
replacement of the railway system. During the period of 1947-1955, a new railway
track of 158 k.m was laid down and 120 new locomotive were acquired. There was a
net addition of 275 passenger wagons and 6952 freight wagons. Along with this, old
engines running on coal were replaced by diesel engines. The old wagons and
coaching vehicles were repaired and made serviceable to carry the bulk of
passengers and goods.

But with the passage of time and the growth of road transport, its role has declined.
In1960-61, about 45% of the total passenger was moved by rail. The share of the
Pakistan railway has continuously decline with the passage of time. Pakistan
railway has been earning profit till 1971-72, after this period, it is continuously faces
losses.

ROLE OF RAILWAY;

As we know that railway is the most important means of transport in Pakistan. It


plays a vital role in the development of our country. Its importance can be realized
from the following facts;
1- Through railway millions of passenger travel through the country and
billions of tone goods and material are transported through the country.
2- It helps the different sectors. With the help of railways, agricultural inputs
are supplied to the farmers and agricultural products are transported to the
markets.
3- Development of the industrial sector is also dependent upon the railways.
Most of the industrial raw material and final products are transported by the
railways.
4- All necessities i.e. edible oil, petrol, rice, wheat, sugar etc, are supplied
through the country that there is no shortage of them, and this is done by the
railway.
5- Cement, iron and other building materials are supplied at site areas for big
construction projects and this is transported by the railway.
6- Railways provide employment opportunities to the people of Pakistan.
Approximately 160 thousands of workers are employed with this
department.

THE MAIN PROJECTS COMPLETED BY RAILWAY SINCE 1947;

1- Completed Projects.
Construction of Karachi circular railway, Kot Addu, D.G.Khan, Kashmore
rail link, Marshilling yard at Pipri, mehran bridge at Kotri, Conversion of
Hyderabad Mirpur Khas and Jakobabad, Kashmore,s section from meter
guage to broad guage.

2- Faster Trains and Electric Traction.


Pakistan Railway introduces a number of new fast trains between the
important cities of Pakistan. Karakuram express, night coach, Shalimmar
express, Jaffar express, Islamabad express between Pindi to Lahore with in 3
hours and 45 minutes, railcar and non-stop trains etc, are being operated in
different cities to provide quicker, cheaper and most comfortable journey to
passengers. The introduction of electric traction on 289.62 k.m. on section
from Lahore to Khanewal and its planned to extension up to Karachi is also
a part of this project.

3- Establishment of Workshops.
A number of workshops are functioning at various railway stations, which
provide facilities of overhual, repair and manufacture. The big workshop at
Mughalpura in Lahore is manufacturing wagons and carriages. The new
carriage factory at Islamabad established in 1971 is also manufacturing
carriages for domestic use as well as for export. Two sleeper-manufacturing
factories have been establishing at Sukher and Jehlum. In order to expedite
track rehabilitation and improvement work, five new factories at an
estimated cost of Rs. 256 millions are being setup at Kohat, Kotri, Khanewal
and Saheenabad.

ASSETS

PLANT & EQUIPMENT UNIT 1998-99 1999-2000


Route - Kilometers Kms. 7,791 7,791
Track - Kilometers Kms 11,526 11,515
Locomotives No. 596 597
Coaching Vehicles No. 1,718 1,572
Other Coaching Vehicles No. 384 384
Freight Wagons No. 24,456 23,906
Railway Stations No. 689 687

OPERATIONS UNIT 1998-99 1999-2000


Passenger, Mixed & other Coaching
No 77,707 79,559
Trains Run.
Train Kilometers, Passenger Mixed and
Thousand 30,559 30,517
other Coaching.
Coaching Vehicle-kilometers Thousand 530,588 564,096
Freight Train Run No 17,510 16,0161
Freight Train-Kilometers Thousand 7,312 6,300
Freight Wagon-Kilometres(Freight &
Thousand 364,646 333,828
Mixed Trains)
Other Coaching Freight Tonne-
Thousand 363,078 396,284
Kilometres.

Volume of Traffic UNIT 1998-99 1999-2000


Passengers Carried Thousand 64,988 67,508
Passengers kilometers Thousand 18,979,838 18,495,324
Tonnes of Freight Carried Thousand 5,448 4,470
Tonne - Kilometers Thousand 3,969,512 3,612,089
Tonne - Kilometers Freight & Coaching
Thousand 4,329,590 4,008,373
Combined.
Freight Wagons Loaded No 315,744 286,165

FUEL CONSUMPTION UNIT 1998-99 1999-2000


Furnace Oil Tonnes 6,792 6,265
H.S.D. Oil Tonnes 132,412 132,955
Coal KWH 261 175
Electric Energy Tonnes 14,693,978 15,026,200

EMPLOYMENT & WAGES UNIT 1998-99 1999-2000


Persons Employed No 95,162 92,784
Cost Of Employees Thousand 4,337,193 4330,639

FINANCIAL RESULTS UNIT 1998-99 1999-2000


Gross Earnings Thousand 9,310,185 9,889,154
Total Ordinary Working Expenses Thousand 9,398,173 9,809,939
Operating Ratio Percent 100,95 99,18

Financial Performance

1. Due to efficient financial management overdraft on Pakistan


Railways has been reduced by more that two billion rupees. ( Rs.
2021.889 million ).
2. The Railway Administration surpassed by Rs. 650 million
Government revenue target of Rs. 13.800 billion.
3. Due to imposition of strict financial discipline and proper
budgetary management, reduction in expenditure of around
Rs.1300 million was achieved.

Financial Performance at a Glance ( 1993-03 )


1999- 2000- 2003-
2001-02 2002-03 Increase
0 01 04
Revenue 9.9 11.94 13.05 14.8 14.6 47%
Operational
12.30 13.79 14.41 15.9 16.7 36%
Expenditure
Deficit 2.4 1.85 1.36 1.1 2.1
The increase in deficit during 2003-2004 was due to escalation in the
prices of fuel (76% ), pay and allowances (13% ) and pension (27% ).
FUTURE REVENUES

REVENUE RECEIPTS
Passenger Freight Other Overall
Earnings Earnings
Year Earning Earning
PKMs TKMs
(Rs) (Rs) (Rs) (Rs)
2003-04 22.8 8.2 4.9 4.6 1.7 14.5
2004-05 23.2 8.6 5.5 5.2 1.9 15.7
2005-06 23.7 90. 6.3 5.9 2.0 16.9
2006-07 24.3 9.5 7.3 6.9 2.3 18.7
2007-08 25.0 10.0 8.4 7.9 2.5 20.4
2008-09 25.8 10.7 9.6 9.0 2.8 22.5
2009-10 26.8 11.7 11.1 10.4 3.1 25.2
2010-11 27.9 12.9 12.7 11.9 3.6 28.4

PASSENGERS
FREIGHT

OVERALL EARNING

Performance of Pakistan Railways


Year Route Number of Freight Freight Locomotives Freight
kilometers passengers carried tons Km (No.) wagons
carried (million (million) (No.)
tons)
1998 7,791 64.9 5.4 4,330 596 24,456
-99

1999 7,791 68.0 4.8 3,612 597 23,906


-00

2000 7,791 68.8 5.9 4,520 610 23,893


-01

2001 7,791 69.0 5.9 4,688 577 23,893


-02

2002 7,791 52.0 4.4 3,397 577 23,939


-03

MAP OF THE TRACK


TRACK LENGTH
FROM TO FROM TO LENGTH
(KMS)
Kiamari Lodharn 0.00 843 843
Sher Shah Multan 72 87 15
Raiwind Shahdara 1,180 1,226 46
Bagh
Lahore Wahgah 00.0 23 23
Chaklala Golra Sharif 1,503 1,522 19
Ab-i-Gum Kolpur 306 343 37
Gulistan Chaman 465 526 60
1.043
ELECTRIFIED SECTIONS ROUTE TRACK
KMS KMS
Lahore Khanewal 285.46 521.22
Lahore – Lahore – 7.60 22.78
Mughalpura Cantt
293.06 544.00

Pakistan Railways
Total Wagons Owned by Pakistan Railways
Type of Wagons Nos Carrying Capacity Max Size
Capacity LXWXH
Tons
Covered Wagons 13,216 22.0 23.5’ x 9.75’ x 8.25’ inner
4 - Wheeler volume 1809.3 cft.
Covered Wagons 8 43.7 45’ x 8.25’ x 9.75’ inner
- Wheeler volume 3456.9 cft.
Open Wagons 4 - 5,253 22 23.5’ x 10’ x 4.5’ inner
Wheeler volume 1075.5 cft.
Open Wagons 8 - 44 40’ x 9.3’ x 5’ inner volume
Wheeler 1866.5 cft.
Special Wagons 4 5,663 22 26’ x 9.3’ for 20 feet
– Wheeler for containers
containers
Special Wagons 8 46 45’ x 9.3’ for 40 feet
– Wheeler for containers
containers
CURRENT FACILITIES AND FREIGHT RATES

Luxurious Saloons
VIP RAIL TRAVEL SERVICE
Luxurious Saloons ------ Can be hired and attached with any Express
Train
PESHAWAR - RAWALPINDI - LAHORE-FAISALABAD- KARACHI-QUETTA
Facilities
Separate Bed Rooms
Sitting Room
Kitchen
Toilet with shower
Separate Rooms for Staff & Servant
Toilet with shower
Separate Rooms for Staff & Servant
Bedding and Crockery is provided
Single Journey Fare for Non-Stop Single Journey Fare for Mail/Express
Trains for Trains for
Air Conditioned Air Conditioned
Rs. Rs.
Lahore - Karachi Lahore - Karachi
32,090 27,920
Rs. Lahore Rs.25,8
Lahore - Quetta - Quetta
29,700 40
Faisalab Rs. Faisalaba Rs.
- Karachi - Karachi
ad 29,140 d 25,350
Faisalab Rs. Faisalaba Rs.
- Quetta - Quetta
ad 26,750 d 23,280
Rawalpi Rs. Rawalpin Rs.
- Karachi - Karachi
ndi 39,430 di 34,300
Rawalpi Rs. Rawalpin Rs.
- Quetta - Quetta
ndi 35,510 di 30,900
Peshawa Rs. Peshawar Rs.
- Karachi - Karachi
r 43,820 38,130
Peshawa Rs. Rs.
- Quetta Peshawar- Quetta
r 41,430 36,050
Rs. Rs.
Quetta - Karachi Quetta - Karachi
21,770 18,940
Note:-
1. Maximum ten passengers can travel in one saloon.
2. Saloons can be used for stay at major stations on payment of Rs. 175/ per hour.
Problems
Since the 1947, a lot of work has been done on the rehabilitation, replacement and
modernization of the railway system, yet the over performance of the railway is not
satisfactory. The performance of the railway can be over viewed from the facts
given in the following table.

NO. OF FRIEEEGHT LOCOMOTIVE FRIEGHT


ROUT PASSENGER CARRIEGE NO. WAGONS
YEAR CARRIED (MILLION) NO.
(MILLION)
1949-50 8553 68.00 7.00 822 23733
1959-60 8572 121.00 12.00 878 29854
1969-70 8564 132.00 13.00 1076 37530
1979-80 8817 144.00 12.00 1003 36235
1989-90 8775 84.70 10.34 773 36249
1999-00 10200
2002-03 11580

From the facts and figures given in the table, the overall performance of the railway
seems to be very low. It is due to the following reasons;
1- The working efficiency of the railway employee is very low.
2- The out date machinery has not so far been replaced by Pakistan railway.
4- Private goods transport and NLC has adversely affected the earnings of
Pakistan railway.
5- The number of passengers traveling for distance has largely decline due to
the availability of better local road transport facilities.
6- Branch rout operations of the Pakistan railway are most uneconomical.
7- Even light passenger trains on main routes are uneconomical.

As we know that railway is an asset, which is owned by the govt. But the
performance of the railway is not satisfactory over the last few decades. When we
look at the back, Pakistan railway has been earning profits till 1970-71, after this
period, it continuously facing losses and this department becomes the burden on the
govt. The govt. decided to privatize it. But this is not the solution of the problem, if
govt. privatizes its entire department, what the govt. will have?
The problem is that the management is not sincere and capable, and also the no. of
employees are more than required, as in most of the govt. organizations. In 1996-97,
the Nawaz govt. downsizes the railway to improve the efficiency of the railway. But
the results are not much change. After this railway is hand over to the Pak army. As
a result its efficiency improves and railway earns profits.
Some of the problem faces by the Pakistan railway are discussed as under;

1- Railway Share in the Transport Sector Allocation Reduced;


The allocation of funds at national level reduced gradually, where
as the allocation for road and air has been increased.
2- Depleting Stock;
The stocks are very old. The out dated stocks are used since years.
This is affecting the performance of the trains at different routs.

3- Worn Out Rails and Sleepers;


The railway lines and sleepiness are also very old. Lack of facilities
during traveling is affecting the repute of the Pakistan railway.

4- Corruption;
The PR is very famous not only for financial corruption but also for
inefficiency, lack of interest and inactivity.

5- Lack of commercial Skills;


The railway department is not being not on commercial lines. The
expenses, revenue and maximum revenue have not been the priority of the
employees and the management of the railway.

6- Lack of Accountability;
There is also lack of accountability with in the depth as well as
external accountability. This leads to inefficiency, corruption and other problems in
the department.

7- Un-economical Sections;
On the demand of people or some time son political grounds, the
govt. started some additional sections. These sections generating less revenue than
cost occur on them.

Suggestion to Improve the Performance of the Pakistan Railway

Our findings to the above discussion are, if the following measures are to be adopted
effectively and firmly than the problems of the Pakistan railway can be overcome or
even solved.

1- Privatization of Pakistan railway;


The govt. should privatize Pakistan railway partially. The
insensitive departments/units should be privatize gradually to off-load Pakistan
railway. Those sections that are burden on the railway should be privatized. By
privatizing those sections, railways efficiency can be improved. Like, Parlor and
Lower A.C section, which are not sufficiently producing profits, should be
privatized. In our point of view, another suggestion is to allow the interested
investment parties to add coaches two or three along with the train and give railway
rent or commission.
2- Railway Aviation Authority;
Another suggestion is to make railway aviation authority. Which
provide facilities to the investors to operate their trains or coaches and railway
provide them engines and all other facilities of platform, diesel, electricity, track, etc
and they have their own management but railway will have to provide them
platform to smoothly operate and they pay a fixed amount of rent bases. By this the
investment will increases in our country and the performance and profits of
Pakistan railway also increases.

3- The Production Unit should give Autonomy;


The production unit should be separated and given autonomy, so
that it can independently plan and implement its programs.

4- Issue of Tickets to Private Sector;


The section of issue of tickets should immediately be privatize to
control corruption and inefficiency. Because some times tickets are available but not
issue to the passengers due to the interest of some persons and as a result, the train
have to go to their destination with few passenger and the loss is on the railway. So
by privatize the ticket issue section, the corruption can be control and railway earns
a handsome amount of profit.

6- Introduction of Fast Trains


The govt. should introduce fast between cities. The Pakistan
railway introduces Islamabad Express between Rawalpindi and Lahore, which
arrives to destination in 3 hours and 45, which is the fastest train in Pakistan
history. But this is not enough, Pak railway has to introduce more trains like this in
different cities to attract the passengers. But the problem is with the introduction of
Islamabad rail, the number of passenger from Rail Car is dramatically shift from
rail car to Islamabad Express and Rail Car is almost going with half of passengers.

Implementation of Privatization in Pakistan

As we know that privatization is the process of transferring of state owned


enterprises to the private sector, in which complete shift of ownership from public to
private sector.
In the first four decades, the govt. policy about the private and public sector has not
been clear. The govt. could not concentrate on one sector till 1980’s. In the 1988 the
govt. issues disinvestments Ordinance to adopt the policy of privatization. The govt.
privatization policy is to off-load the public sector; the process would be carried out
in three phases. Different institutions/enterprises will be sold to private sector and
the revenue generated will be used for debt retirement.
In 1997, Khawaja M. Asif appointed as a chairman of privatization commission by
the Nawaz Sharif govt. Who announce the privatization of Pakistan railway along
with other institutions. But due to certain reasons this could not happen.
And now this govt. tries to privatize the Pakistan railway. But in our point of view
Pakistan railway is an important mean of communication and this would not be
completely privatize. We personally suggest that govt. should try to over come its
losses and improve the performance of the railway. People are like and prefer to
travel in the train, but due to the performance deficiency people don’t travel. The
govt. should privatize certain sections like parlor and Lower A.C, and also the ticket
issue section because these sections not earns sufficient profit and burden on the
railway.