econimics project

8/3/2019 Econimics Project

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FINAL PROJECT

INTRO.OF MICRO ECONOMICS

SUBMITTED TO:

SIR.IMRAN

SUBMITTED BY: ASIF HAFEEZ

(083582)

SUBMISSTION DATE:

26-12-2011

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Contents1. Introduction -------------------------------------------03

2.

Railway Earning ---------------------------------------04 3. Railway Traffic ---------------------------------------05

4. Corporate Profile --------------------------------------09

5. Corporate Direction -----------------------------------09

6. Pricing Profile -----------------------------------------09

7. Cargo Express ------------------------------------------10

8. Concrete Sleeper Factories(CSF) -------------------10

9. Pakistan Locomotive Factory ------------------------10

10. RailCOP ------------------------------------------------ 1111. PRACS --------------------------------------------------11

12. Karakorum Railway ----------------------------------11

13. Pakistan Railway Crisis -----------------------------12

14. Future of Railway ------------------------------------18

15. Conclusion --------------------------------------------18

16. Recommendation ------------------------------------19

17. Conclusion--------------------------------------------20

18. Reference ----------------------------------------------20

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Introduction:Pakistan Railways provides an important mode of

Transportation in the farthest corners of the country and brings them

closer for Business, sight seeing, pilgrimage and education. It hasbeen a great integrating force and forms the life line of the country bycatering to its needsfor large scalemovement of peopleand freight.

Thepossibility of Karachias a sea port was firstnoticed in the mid of 19th century and SirHenry Edward Frerewho was appointedCommissioner of Sindafter its annexationwith Bombay in 1847sought permissionfrom Lord Dalhousieto begin survey of seaport. He also initiatedthe survey for

Railway line in 1858 . It was proposed that a railway line from KarachiCity to Kotri, steam navigation up the Indus /Chenab upto Multan andfrom there an other railway to Lahore and beyond be constructed.

It was on 13th May,1861 that first railway line was openedfor public traffic between Karachi City and Kotri, the distance of 105miles. The line between Karachi City and Keamari was opened on16.6.1889.By 1897 the line from Keamari to Kotri was doubled.

The railway line from Peshawar to Karachi closely followsAlexander’s line of march through the Hindu Kush to the sea. Differentsections on existing main line from Peshawar to Lahore and Multanand branch lines were constructed in the last quarter of 19th centuryand early years of 20th century.

The 4 sections i.e.Scinde railways, Indian Flotilla companyPunjab railway and Delhi railways working in a single company werelater on amalgamated into Scinde, Punjab & Delhi railways companyand was purchased by the Secretary of State for India in 1885 and inJanuary, 1886 it was named North Western State Railways which waslater on renamed as North Western Railways.

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At the time of partition, North Western Railway’s 1847route mile was transferred to India leaving route miles 5048 toPakistan. In 1954 The railway line was extended to Mardan andCharsada section and in 1956 Jacababad-Kashmore 2’-6’’ line wasconverted into broad gauge. Kot Adu-Kashmore line was constructed

between 1969 to 1973 providing an alternate route from Karachi to upcountry.

Railway EarningEarning of Pakistan railways 1998 to 2007.It is the accuratemeasurement of Pakistan railways earning.

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Railway Traffic

Passenger Traffic The PassengerBusiness Unit is responsible forthe creation, maintenance anddelivery of passenger servicesand all related amenities to thetraveling public, including thetransportation of parcel traffic.The Unit is headed by the

Additional General Manager(PBU), who is assisted by thefollowing Heads of Departments (Principal Officers ):

Chief Electrical Engineer / PassengerChief Commercial ManagerDeputy Chief Operating Superintendent/CoachesChief Mechanical Engineer ( Carriages )Divisional Superintendent Workshop/Moghalpura

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Computerized Reservation SystemName of Divisional of Pakistan Railways with number of Station:

Karachi-4 Quetta-2 Sukkur-8 Multan-6

Karachi City Quetta Sukkur Bahawalpur

Karachi Cantt Sibi Rohri Multan Cantt

Drigh Road Sadiqabad Khanewal

Hyderabad Rahim Yar Khan Chichawatni

Khanpur SahiwalLarkana Shorkot Cantt

Nawab Shah

Mehrabpur

Lahore-10 Rawalpindi-4Peshawar-

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Lahore Cantt Rawalpindi Peshawar

Lahore ( HQ ) Jhelum Attock City

Gujranwala Lalamusa JahangiraGujrat National Assembly ( ISLD ) Nowshera

Narowal

Sialkot

Raiwind

Okara

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Pattoki

Faisalabad

Freight Traffic

Vision Statement of Freight Business Unit:

A progressive freighttransport organization operated byprofessional management and competentstaff committed to provide reliable,competitive, safe economical service of recognized standards to its customers.

Organization Set-Up:

The Freight Business Unit is managed by AdditionalGeneral Manager, who is assisted by heads of the various FreightDepartment viz., Chief Commercial Manager, Chief Marketing Manager,( Marketing of Freight Service ) Chief Traffic Manager ( Dry Ports ),Deputy Chief Mechanical Engineer/Wagons and Deputy Chief OperatingSuperintendent ( Locomotives).

Performance of Pakistan Railways

Year Route Kilo-metres

Number of Passengers

carried(Million)

Freightcarried(MillionTonnes)

FreightTonne

KilometresMillion)

Locomotives(Nos)

FreightWagons

(Nos)

1980-811981-82

8,817.338,774.87

123.00120.00

11.0011.00

7,9187,067

960963

36,24836,213

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1982-831983-841984-851985-861986-871987-88

1988-891989-901990-911991-921992-931993-941994-951995-961996-971997-981998-99July-March1999-2000

8,774.878,774.878,774.878,774.878,774.878,774.87

8,774.878,775.008,775.008,775.008,775.008,775.008,775.008,775.008,775.008,775.007,791.00

7,791.00

123.00107.0095.0083.0078.0080.00

84.7084.6084.9073.3059.0061.7267.7073.6568.8064.9064.99

49.20

12.0011.0011.0012.0012.0012.00

10.439.307.727.567.778.048.116.856.365.985.45

3.78

7,3237,3857,2038,2707,8208,113

8,3647,2265,7095,9626,1805,9386,7115,0774,6074,4474,330

2,890

979943916879837806

773768753752703676678622633611596

582

35,99035,78235,34135,23734,86735,929

36,24935,84234,85130,36929,45129,22828,56126,75525,21323,84323,893

22,247

Source: Ministry of Railways

Source: Ministry of Railways

Corporate Profile:

There are 200 Freight Stations on the this system with12,000 personal dedicated to provide service to the clients. TheFreight Business Unit serves two major Sea Ports, Kiamari and BinQasim. Some of the major commodities that are handled include PTA (

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Chemical for Rayon Manufacturer): Petroleum Oil and Lubricant (POL),Wheat, Coal, Fertilizer, Rock Phosphate, Cement, Sugar, Oil seedContainers and Goods for Transit to Afghanistan.

Corporate Direction:

The Freight Business Unit is a customer orienteddepartment. Its pricing policy is client friendly. All possible efforts aremade to reduce cost of transportation and increase revenue throughefficiency, innovation and modernization. It proudly serves as thenational flag carrier in times of peace, war and calamity.

Pricing Policy:

Pakistan Railways moves cargo on rails at a lesser cost infuel spent in moving the same cargo by road. The organization byreason of this advantage is able to formulate its pricing policy to themaximum advantage allowable to the customer and the organization.The pricing policy of Railways is that all the commodities be chargedon differential basis according to the principle of "What each type of traffic can bear" The rate structure of Pakistan Railways is designed tofix an upper limit while taking into account the basic cost incurred intransport value of commodity, its loadability, susceptible to damageand pilferage along with various other factors. Promotional reducedrates are quoted to provide incentive to move the commodities by Rail

of Road. Seasonal reduced rates are quoted to attract the commodity.

Dry Port over the System: The containerization of cargo and the establishment of Dry

Ports were the steps that further facilitated multimodal movement of goods.

Cargo Express:

A Cargo Express Service introduced Since 1974 is nowrunning daily for transportation of general cargo from Karachi City toBadami Bagh / Lahore and Vice Versa. This cargo express has been re-structured with High Capacity and High Speed Wagons along withterminal facilities to increase the present load of 1000 tones to 1600tonnes A Similar Cargo Service has been initiated between FaisalabadMultan and Karachi and vice versa. Presently, these services are being

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run five time a week.

Concrete Sleeper Factories ( CSF ):

Pakistan Railway own five concrete sleeper factories,located at Sukkur, Khanewal, Kohat Cantt. , Shahinabad and Kotri. Thefactory at Sukkur was established in 1967, first in the sub-continent.other four factories came up in 1979-80. 514 Persons are working inCSF / Organization.

Pakistan Locomotive Factory, Risalpur The locomotive manufacturing factory was established at

Risalpur in 1993 at a total cost of Rs. 2284 million including a foreignexchange component of Rs. 1469 million. It is a modern factory and isequipped with state of the art plant & machinery. This factory isspread over an area of 257 acres, out of which 100 acres are coveredby the factory while on the remaining 157 acres is the staff colony.

The design production capacity of the factory is 25 diesel electriclocomotives per annum on single shift basis. The production capacitycan however be increased by increased by introducing double shifts.The technology for manufacturing of locomotives has been acquiredfrom Hitachi Ltd. Japan, General Electric ( USA ) / Adtranz ( Germany )and dalian Locomotive & Rolling Stock Works, China. The factory hasachieved the design capacity of 02 locomotives per month in the on

going project of 69 DE Locomotives.

Pakistan Locomotive factory has so far manufactured 97 new DieselElectric Locomotives of 2000-3000 hp for Pakistan Railways Besidesmanufacturing of new locomotives 26 overage Locomotives of 2000-2400 hp have also been rehabilitated by this factory. In addition tothis, different spare parts of locomotives are also being manufacturedon regular basis for use on Pakistan Railways. The locomotivesmanufactured in this factory are successfully operating the importantmain line trains and their performance and reliability's satisfactory.The factory has saved foreign exchange of Rs.1392 million on accountof local manufacture.

Locomotive Rehabilitation Project Moghalpura, Lahore

The Diesel Electric Locomotive is the main source of powerTraction Service. The expensive unit can not be replaced so frequently.Rehabilitation of Locomotive increases its useful life manifold for

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further service with less amount of expenditure. On this basis, PR setup a Project in 1976 in the Moghalpura Workshops Lahore, for theRehabilitation of aging D.E. Locomotives, giving them a new lease of life of 15-20 years.

Railway Constructions Pakistan Limited (Railcop) Railway Constructions Pakistan Limited ( RAILCOP), a

subsidiary of Ministry of Railways was incorporated as a Public LimitedCompany in 1980 under the Companies Act 1913, with an initialinvestment of Rs. 0.5 million. Due to progress in construction activitiesthe turn over of the company is Rs.775.0 million during the financialYear 2007-2008.

Pakistan Railway Advisory & Consultancy Services Limited

(PRACS) Pakistan Railway Advisory & Consultancy Services ( PRACS

) is public Limited company, which was established in the year 1976and registered under Company's Act 1913 ( later on converted in toCompanies Ordance 1984 ).

Karakoram railway Pakistan awarded a Rs72 million (US$1.2 million) contract

to an international consortium to carry out a feasibility study forestablishing a rail link with China to boost trade relations between the

two countries.

The study will cover a 750-kilometre sectionbetween Havellian and the 4,730-metre-high Khunjerab Pass overMansehra district and the Karakoram Highway. Havellian is alreadylinked with the rest of the rail network in Pakistan; the Chinese will laysome 350 km of track within their own territory from Kashgar terminusup to the Khunjerab Pass, linking Pakistan with China's rail network,largely following the route of the Karakoram Highway.

By expanding its stake in Pakistan's rail sector, China is poised toexploit the country's advantageous geographical position - strategicallylocated at the confluence of South, Central and West Asia.

Beijing's involvement in several rail projects in Pakistan is motivatedprimarily by commercial considerations, but it also sees distinctadvantages for its improved transportation and access to Central Asiaand the Persian Gulf states. A reliable network of road and rail linkscan only ensure China's access to energy-rich central Asia, serving itboth commercially and strategically.

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http://en.wikipedia.org/wiki/China

http://en.wikipedia.org/wiki/Havellian

http://en.wikipedia.org/wiki/Khunjerab_Pass

http://en.wikipedia.org/wiki/Karakoram_Highway

http://en.wikipedia.org/wiki/Kashgar


http://en.wikipedia.org/wiki/China

http://en.wikipedia.org/wiki/Havellian

http://en.wikipedia.org/wiki/Khunjerab_Pass


http://en.wikipedia.org/wiki/Kashgar




In the first week of this month, Pakistan Railways and China's DongFang Electric Supply Corp signed an agreement for establishing a raillink between Havellian and Khunjerab. Ingenieurgemeinschaft Lasser-Feizlmayr (ILF), a consortium of consultant engineers from Austria,Germany and Pakistan, is to submit its report to the Ministry of

Railways in nine months. It is most likely that the distance betweenHavellian and Khunjerab will involve the construction of tunnels. TheILF services encompass both the construction of new high-speedrailway lines and the modernization of existing lines for standard-gauge and narrow-gauge railways in addition to tunnels.

Pakistan Railways Crisis1. A shortage of locomotives

A shortage of locomotives has compelled PakistanRailways (PR) to suspend more of its passenger trains. The number of dai ly suspensions is alarminglyhigh. Railways is finding it anincreasing challenge to cleararrears of Pakistan State Oil for itsfuel supply and pay staff salaries

and pensions.It maybe recalled that the recent failure to paysalaries and pensions of PR staff led to countrywide protestswith the train service throughout the country suspended.President Zardari was compelled to hold an emergent meetingand direct a cash-strapped Ministry of Finance to release onebil lion rupees to enable PR to make payment to staf f.

The cause of the current state of affairs of PRis a continuous decline in income: during July-September 2011PR income declined to 351.5 million rupees from 427.6 millionrupees during the comparable period last year. This decline ispremised on a range of factors that include outright theft of

locomotives and expensive equipment from Railwaysworkshops, mismanagement associated with heavier relianceon bailout packages from the government that the cash-strapped treasury finds increasingly difficult to extend andsustained failure to restructure and modernise PR operations.Reports that a deal to purchase locomotives from a foreigncountry was compromised due to allegations of commission

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http://en.wikipedia.org/w/index.php?title=Dong_Fang_Electric_Supply&action=edit&redlink=1






being sought, is symptomatic of the malaise that currentlybesets all our national institutions.

A way out is for the cabinet and all ministries to meticulouslyadhere to the public procurement rules and not seek a way out

by invoking the national interest clause contained therein.The latest proposal by the PR to resolve its financial woes is toseek an Expression of Interest (EoI) from the private sector torun its freight operations. Public-private partnership has beenthe strategy enunciated several times by President Zardari.However, the government has failed to provide an enablingenvironment. At present, the federal government is heavilyrel iant on domestic borrowing to meet the needs of i tsburgeoning budget deficit, a need that has been exacerbatedby the decision of our economic team to abandon the stalledInternational Monetary Fund programme and not seek another– a fact that has automatical ly led other bilaterals andmultilaterals to suspend assistance for programme lending(budgetary support).Thus an enhanced borrowing from theprivate commercial sector, instead of from the State Bank of Pakistan (IMF condition for the stalled programme), has led tocrowding .There is thus little likelihood that an EoI would beforthcoming anytime soon. If one adds the ingredient of government’s continued engagement in pricing of the serviceprovided by PR to this state-owned entity’s profile then it is aforegone conclusion that no one would be tempted to enter this

arena. The blueprint for PR reforms and restructuring like otherbadly managed loss-making state-owned entities is available.

2. Financial crisis in Pakistan Railways

KA RA

CHI :

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The Ministry of Finance has asked the State Bank of Pakistan tohold the release of salaries and other payments Pakistan Railwayscausing further chaos in a department marred by corruption andirregularities. The present financial crisis under which the PR is notable to release salaries of thousands of employees and make

payments for fuel consumed by passenger and freight trains is due tothe holding of financial matters by the ministry.For the first time, Railway has to make the payment of salariesthrough cash earnings in various divisions after severe protest by itsemployees who had not received their salaries for over 15 days,sources said adding that the Karachi Division has disbursed salariesthrough the three day earnings of around Rs30 million. The divisionaladministration, disbursed the salaries of staffs of various categories onJuly 15, 16 and 17 through stopping the submission of cash earningsin National Bank of Pakistan (NBP) for three days. “This situation has never happened in the railways because before theSBP released salaries and other payments even if the amount in therailways account was temporarily not sufficient,” they said. They alsoadded that after the instruction of the ministry of finance that SBP willrelease the fund only if the railways account has the required amountof money, salaries and other payment have been severely disrupted.Talking to Pakistan Today Pakistan Railways Workers Union ChairmanManzoor Razi, said “when the army, police, judiciary and even theassembly members are paid their due salaries without any delaydespite of no earnings, why are the employees of PR, who earn almostRs60 million daily for the country, not being paid their salaries.”

For the last one year, he said, SBP was releasing the required amountto the railways only after receiving the letter from the finance divisionin Islamabad, which caused no delays in payment, but at the sametime some cheques issued to Pakistan State Oil and others were nothonored.Though the PR was submitting almost Rs60 million daily in NBP, the PRaccount in SBP was showing only Rs30,000 currently. The involvementof the three organization including NBP, SBP and Ministry of Financewere creating hurdles in financial matters, he claimed. He furtherdemanded that the government should immediately release the

announced bailout package of Rs11.1 billion to PR besides disbursingthe Rs15.5 billion allocated in the budget.PR cheque issued to PSO bouncedMinister for Railways Ghulam Ahmed Bilour, has warned that PR hasonly two days oil reserves to run passenger and goods trains. Acheque issued by the railways to Pakistan State Oil (PSO) has bouncedand according to a letter sent by PSO to the Section Officer FinanceDivision Islamabad, on Tuesday, the total outstanding dues of PR to oil

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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 hassupplied 3.2 million Litres, High Speed Diesel and 40,000 LitresKerosone Oil this month.

ISLAMABAD: Besides inconveniencing travellers, Pakistan Railways’ (PR)

present financial turmoil has also put vendors and shopkeepers at theRawalpindi Railway Station in a fix.Ghulam Rasool, who has been running a general store outside therailway station for the last 12 years, told The Express Tribune hisfamily is facing “their toughest days”. The reason is the staggeringdecline in the number of customers at his shop, following PR employeeprotests for their salaries and empty reassurances by the government-run company. He said days go by without any sale.The present crisis may have adverse affects for the economy but it hasalso shattered hopes of many poor families whose bread and butter isattached with the rail service.Javed and Farman, two brothers who own a teashop at the station,said that for last two months they have not been able to meet theirdaily expenditures. “For us it is unbelievable,” said Javed, “the placeused to be filled with people and now it’s deserted.” The two havebeen running the refreshment centre at the main entrance of thestation since 1992, but now they feel it’s time they close down.Standing at the station’s platform, Mehbool Elahi looked visibly

disgruntled. “I have always loved to travel by train,” said Elahireminiscing the times when he used to come at the platform with hisfather who worked at the very same station. He said for him thepresent disorder in the rail service is “a real shocker” and has marredthe charm of one of most busy railway stations of the country.The cab stand outside the station is now an empty plot, said Yousaf Khan, a taxicab driver, who used to wait for passengers outside therailway station. He said he goes wherever he can find passengers andthat is anywhere but the railway station.Rawalpindi Railway Station was built in the 1880s by the government

of British India to help facilitate trade. The service was also used forother economic and strategic purposes in the sub-continent.Published in The Express Tribune, December 1st, 2011administration of federal government and its head quarter is in Lahore.It is an important source of transportation throughout Pakistan. Itcarries millions of passengers throughout the country. It used to carryhuge freight in Pakistan. This cheap and safe mode for passengers isnow facing a number of issues. A number of services of Pakistan

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Railways have been cancelled, suspended or terminated and manymore will be suspended in near future because of mismanagement andshortage of locomotives, fuel and money. The chapter of all majorservices, from Lahore to Karachi, has been closed. It is pertinent tomention that all AC services have been stopped. The incompetent

administration has failed to attain locomotives from any quarter of theworld. Passengers are suffering due to mismanagement of administration. Pakistan Railways decision to suspend goods trainservice due to severe shortage of locomotives and fuel is another blowto this organization. It is now basically financially bankruptorganization. In other words it is on the verge of financial collapse.

The political interference, nepotism, corruption, poor maintenance of tracks & bridges and mismanagement in almost every field are themajor causes of failure of Pakistan Railways. Pakistan Railwayspurchased 69 completely built locomotive units from China under 2003agreement. These are about 37% cheaper than the Europeanlocomotives but considered to be faulty. It is stated that 32 of thesehave already been scraped. Dong Fang Electric Corporation has beenseverely criticized for producing low quality locomotives. The otherviewpoint is that misuse of the machinery was the major cause of thefailure of Chinese locomotives. According to Sheikh Rashid, the formerrailway minister, crankshafts of locomotives worth Rs10 million weredamaged because of the use of substandard lubrication oil.

It may be mentioned here that normally a locomotive consists of six

traction motors while the Pakistan Railways is operating them withonly three or four motors. This is the major cause of mid-waybreakdown of trains. The passengers, in such a case, have to wait fora long time till repair or replacement of faulty engine takes place.Naturally trains are too late and passengers can be seen sitting atplatforms with their luggage. A number of trains lack facility of light atnights because of the failure of the generators and ill attitude of management. Another reason that prevents people to go by train isincrease in corruption by the ticketing officials. The reservation of birthis an uphill task. There are complaints that reservation is confirmed

after receiving bribe of hundred or more rupees by passengers.Pakistan Railways is no more the best choice to travel for thepassengers.

Haji Ghulam Ahmed Bilour, federal minister for Pakistan Railways, is avery controversial figure. He is considered to be somewhat responsiblefor the deteriorating situation of Pakistan Railways. His viewpoint isthat the whole railway system is obsolete. He complains that half of

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the total locomotives are out of order. Almost 86 % bridges are morethan 100 years old. The trains, tracks and machinery are outdated orfaulty. He says that Pakistan needs 25 to 30 engines annually. He isnow making a plan to repair, hire or lease locomotives in collaborationwith the private sector. Moreover, he believes that a bailout package

can be helpful to overpower the crisis. According to him delay in fundsto Railways is the root cause of the crisis. He accuses the federalgovernment for not releasing remarkable funds for the betterment of Pakistan Railways. All his plans may end in failure because of corruption in the management, financial problems, his ill-advisedattitude and lack of vision. The efficiency of the railway minister isevident from its almost nil performance. He believes that two mafiagangs are very strong in Pakistan Railways but finds himself incapableto take any action against them. He seems to be too weak to solve theissues and problems faced by his ministry.

The Chief Justice has expressed his disapproval for the high-ups of Railways in the following comments: “Ninety metric tons of silverworth millions was sold for mere Rs28,000 as scrap, while a light bulbworth Rs60 is being purchased at Rs400, whereas absence of maintenance turned expensive locomotives into junk one by one,besides a Grade-18 officer, a blue-eyed boy of the railways minister, ispromoted to hold a Grade-20 post of secretary purchase.” In thewords of Chief Justice “ the electricity wires meant for electric trainsfrom Lahore to Khanewal have been stolen.” Moreover, he observedthat “tickets were sold in advance outside ticket counters and tickets

were not available at railway stations.” It is also in the notice of theapex court that land mafia has grabbed Pakistan Railways land indifferent areas of the country. He has already ordered the railways toapproach the Sindh administration in this connection. Nonetheless,everybody knows the efficiency of the present Sindh government.Railways needed Rs2.2 billion to pay the salaries and pension to itsprotesting employees but the government has not released enoughmoney to overpower the deep financial crisis. The economy of thecountry is under severe pressure and the poor administration seems tobe unable to solve the problem. The apex court has already remarked

“Railways should take steps to make it functional as early as possible.” Sheikh Rashid Ahmad, former railway minister, blames corrupt officersof the department for the present situation in Pakistan Railways.According to him only 156 locomotives out of 500 are in normalworking condition. According to his statement 15,000 freight wagonsare not plying in the country and the business has gone in the handsof the private sector. He claims that 200 coaches and severallocomotives, imported from China, could have been manufactured in

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the local Carriage Factory in Islamabad. Due to imported coaches andmachinery several labourers have lost their jobs or sent on forcedleave. A limited number of loaders have been appointed by theadministration on the platforms to carry the luggage of thepassengers. It is stated that a particular amount of money is received

by the administration as a bribe from these poor loaders. In returnthey are allowed to receive hundred rupees from the passenger tocarry the luggage.

A private firm has been working under the contract to transport goodsincluding medicines, carpets, furniture and electronic appliancesthrough Pakistan Railways. The monopoly of this firm is an obstacle inthe free trade of different goods. Pakistan Railways should createcompetitive atmosphere to provide the customers with more facilities.Pakistan Railways losses have reached billions of rupees. It seemsdifficult to bring trains back on tracks in the present circumstances.The situation may not change unless corrupt high-ups are removed,suspended and dismissed from the services. To restructure andmodernise Pakistan Railways under the present administration seemsto be the dream of a mad man. Pakistan Railways is sinking in the seaof corruption as no serious efforts are being made to eradicate it fromthis department.

Railway’s Future:ISLAMABAD - The Finance Minister Dr Abdul Hafeez Shaikh, Minister

for Railways Ghulam Ahmad Bilour and Religious Affairs MinsterKhurshid Shah on Thursday discussed a plan for the comprehensiverestructuring of Pakistan Railway and hiring consultants to revive it.The meeting proved unfruitful as no concrete decision or proposalcame out of it. On the directives of Prime Minister Syed Yousaf RazaGilani all three ministers sat together to come up with a solution forthe recuperation of Pakistan Railways.They deliberated at length over the financial requirements of thePakistan Railways, agreed to initiate action in this regard anddiscussed the restructuring process. Sources told Pakistan Today thatanother meeting would be held today in which different options for the

revival of railway would be discussed. Pakistan Railway is facing afinancial crunch and has demanded the release of funds approved bythe federal cabinet in order to revive it.In the last few days due to shortage of fuel PR asked for Rs3.5 billionto make payments to Pakistan State Oil (PSO) and otheradministrative expenditures. The finance ministry has released Rs2.15billion to railway to overcome the crisis for the time being. In a

18



meeting on June 24 with Minister for Railways Ghulam Ahmed Bilourthe Finance Ministry agreed to release Rs11.5 billion by next monthunder bailout package approved by the federal cabinet in Decemberlast year. Pakistan Railways has demanded Rs11.5 billion formaintenance and rehabilitation of railway out of which Rs6.1 billion are

to be spent on maintenance of 145 locomotives, Rs2 billion each onrehabilitation of tracks and coaches and one billion rupees are to bereserved for future use.Pakistan Railway has 550 locomotives out of which 360 aredysfunctional at the moment. The finance minister, minister forrailway, deputy chairman planning commission secretary finance,communication and other concerned officers would take part in today’smeeting.

Recommendation:

I recommend the PakistanRailway to repair the old engines andcarts and start them for passengers.Many of the engines stand workless.Government of Pakistan needs toprovide the spare parts of and providefull environment to maintain themachinery. Government fix annualfund to the Pakistan Railway and

decrease the extra expense of PakistanRailways. Such as decrease the no of commeties,no of seniors etc. Repairtracks also. For recent condition of Pakistan Railway new engines notsuitable of Pakistan Railways. These engines will increase the expensesof railways and railways already have sufficient budget to survive. Isuggest Pakistan Railway that “To provide a competitive, safe, reliable, market oriented,

efficient and environment-friendly mode of transport.”

ConclusionConclusion is that Pakistan Railway face full economy crisis. Ourrailway totally end they have no budgets to recover themselves. Itstime to thinking Railways the economy power of a country if railwayshutdown its mean the economy power of Pakistan shutdown.

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Reference

1. http://www.pakrail.com/

2. http://www.aaj.tv/2011/10/pakistan-railway-crisis-sets-in-deep/3. http://www.privatisation.gov.pk/Transport/Pakistan%20Railways.htm

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5. http://en.wikipedia.org/wiki/Pakistan_Railways

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%E2%80%99s-future/

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a=v&pid=explorer&chrome=true&srcid=1xfki7d-

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l&srcid=ADGEESjjamgmSzyT_iGYMDm_X0Ji-LzNXRTti4ze1HbFn6chvHbhuI0AQRiM0qn01cAuhLWuIna0kXqEzMzpvINke

m5JKPEiAfg7TK2-

40M39zV8htgbN4L_nis1mvEUUOFFy5vfyvum&sig=AHIEtbTuA7LHcLkCt0wShawxNj-dmBE6EQ

10. http://tribune.com.pk/multimedia/slideshows/310272/

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http://www.pakrail.com/

http://www.aaj.tv/2011/10/pakistan-railway-crisis-sets-in-deep/

http://www.privatisation.gov.pk/Transport/Pakistan%20Railways.htm

http://www.pakistantoday.com.pk/2011/07/financial-crisis-in-pakistan-railways/

http://en.wikipedia.org/wiki/Pakistan_Railways

http://pakrail.com/ybook2.pdf

http://www.pakistantoday.com.pk/2011/08/ministers-meet-to-discuss-railway%E2%80%99s-future/


https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=1xfki7d-sWgnqBIb1LbY6oCN1f0CLXJGnnzD4AxHYBZKToIG1kIyZsKkNswnK&hl=en_GB




https://docs.google.com/viewer?a=v&q=cache:bjyicYzRYjkJ:finance.gov.pk/survey/chapters/14-Transport%2520final08.pdf+economy+graph+of+pakistan+railways&hl=en&gl=pk&pid=bl&srcid=ADGEESjjamgmSzyT_iGYMDm_X0Ji-LzNXRTti4ze1HbFn6chvHbhuI0AQRiM0qn01cAuhLWuIna0kXqEzMzpvINkem5JKPEiAfg7TK2-40M39zV8htgbN4L_nis1mvEUUOFFy5vfyvum&sig=AHIEtbTuA7LHcLkCt0wShawxNj-dmBE6EQ








http://tribune.com.pk/multimedia/slideshows/310272/

http://www.pakrail.com/

http://www.aaj.tv/2011/10/pakistan-railway-crisis-sets-in-deep/

http://www.privatisation.gov.pk/Transport/Pakistan%20Railways.htm

http://www.pakistantoday.com.pk/2011/07/financial-crisis-in-pakistan-railways/

http://en.wikipedia.org/wiki/Pakistan_Railways

http://pakrail.com/ybook2.pdf









http://tribune.com.pk/multimedia/slideshows/310272/

econimics project

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