PUNJAB GROUP OF COLLAGES JOHAR CAMPUS

SUBJECT: ECONOMICSSECTION: B-1

Name : Shahzaib Rashid Butt , L4F14ASOC0047

M. Arslan Ahmed , L4F14ASOC0030

Sami ,

L4F14ASOC0055

Asfar ,

L4F14ASOC0035

Submitted to: Prof. Itrat Shah

PAKISTAN RAILWAYS

HISTORY

The idea of a rail network was first thought of in 1847.

On May 13th, 1861 with the help of Sir Henry Edward Frere the first railway line was opened to the public, between Karachi (city) and Kotri, with a total distance of 105 miles (169 km).

INTRODUCTION

State own rail transport service Head quarter in Lahore Stretched over 8000 km Important mode of transport Administer under federal Govt,

ministry of railways

MINISTRY OF RAILWAY

Khawaja Saad Rafique is a Federal Minister of Railways nowadays.

DECLINE OF PAKISTAN RAILWAYS

Pakistan Railways is not only the cheapest yet safest mode of travel.

Over the years, lack of attention, poor policies, increasing expenditures, and most recently, the floods have left the Railways with huge deficits running in billions of rupees

CURRENT PREPARED POSITION

Faces shortage of Rs 26252.315 Millions Shortage of locomotives No luggage trains Half of locomotives are out of order Communication system is out dated Track is over aged Borrowed 40 billion from state bank Paying 4.6 billion as a interest to State Bank of

Pakistan. Revenue declining repeatedly

PR COOPERATION WITH CHINA

China is actively involved in the development of Pakistan Railways for the past five years

China is to export 69 modern locomotive engines to Pakistan to modernize Pakistan's railway fleet.

The first 15 engines will be manufactured in China and the remainder will be assembled in Pakistan, with spare parts and technology provided by China.

COMPETITORS OF RAILWAYS CNG Buses, Daewoo Express, Bilal Travels, Khan Brothers, Skyways, Niazi express.

RESTRUCTURING OF PAKISTAN RAILWAYS

Time is important to the customers. The seat reservation system should be

made online. The first line staff should be trained. Railways service center should be

restarted. Proper information should be provided to

the customers. Railway stations should be clean.

REVENUE VS EXPENDITURE The major losses faced by the Pakistan

Railways today are a direct result of decreasing revenues with increased expenditures.

The expenditure recently crossed Rs.53 billion in one year out of which Rs.20 billion were allocated for salaries and pensions.

The revenues are dwindling to about Rs.23 billion per year.

Revenue share for freight trains has declined from 40 percent to 25 percent as a direct result of neglecting this cheap mode of transportation

DISASTERS

Nature has not been too kind to Pakistan Railways either.

According to the National Disaster Management Authority, the recent floods have caused a loss of Rs.6.7 billion to the railway network as several hundred kilometres of lines were washed away.

STRATEGIES FOR TURNAROUND

GOALS• Ensure availability of sufficient railway

engines• To ensure that railway trains leave/arrive

at the station at listed time• Ensure proper maintenance of engines • Utilize cheap coal-driven engines instead

of expensive diesel driven engines

CONDITION OF EMPLOYEES

Pakistan Railways has about 90,000 employees consisting of staff and officers as of 2008. which is more than required.

Employees are taking salaries without working and sitting idle at home.

More than Rs.20 billion is allocated for salaries and pensions

Employees have very strong unions so it is difficult for Government to fired them

PRIVATIZATION OF RAILWAY The Finance Division of GoP has proposed

the privatization of Pakistan Railway due to the increasing budget shortage and poor performance of Pakistan Railways since last many years

I as a citizen of Pakistan think that privatization of Pakistan railway is good for railway

SURVEY According to Gilani research

foundation, 42 % of all Pakistanis support the privatization of Pakistan railway.

whereas 35 % are against it who believed that privatization of Pakistan Railway is not a good idea and the rest of the 23 % gave no response.

FUTURE GOALS

Goal 1

• Repair old engines at railway workshops

• Import new engines from china

• Import new engines from USA

GOAL 2

Task the station managers to start train on time

Conduct study to determine proper time duration for each time route.

GOAL 3

Training workshops to enhance capacity of Pak railway engineers and technicians

Routine maintenance schedules to be strictly followed

Purchased required railway spare part from open market (locally)

GOAL 4

Reduce the number of cargo train

Repair passenger coaches in workshop

Purchase passenger coaches from china

Old coal-fire railway engines refurbished and utilized in on short routs

POSSIBILITY REPORT FOR FUTURE GOALS

Goal 1 Pak railway is facing financial crisis, no

new imports are force able in future

only repair can made locally at Pak railway workshops

GOAL 2

Disciplining the station passengers can enhance efficiency in timing

Good maintenance, done locally, can ensure zero breaks down

GOAL 3

Routine training and refresher courses are possible

Railways workshops to produce spare parts

RECOMMENDATIONS

Railway should treat customer in a respectful manner

Trains should depart on time On the long routes the number

of stations should be reduced The security system should be

better

THANK YOUFor further details you can visit:

www.pakrail.comand for general information dial

117