Wednesday 2 November 2011

Dragging Pakistan Railways to oblivion

It is tragic to witness that one of the giants of public sector entities (PSEs), Pakistan Railways, is on the brink of demise owing to the mismanagement and corruption that have brought it to this critical juncture. However, some hope now appears on the horizon as the Supreme Court of Pakistan (SC) has taken up this matter.

The two-member bench headed by Chief Justice Iftikhar Muhammad Chaudhry has asked Secretary Pakistan Railways (PR) to file references against corrupt officials in the National Accountability Bureau (NAB) and retrieve property confiscated by the land mafia. The much welcomed suo motu notice has come in the wake of the continuing crises, even after the federal cabinet has released Rs 1 billion to pay the salaries and pensions of the PR current and former staff. 

Unfortunately, however, the management of PR is still not serious in pulling it out of its crisis. The Railways Minister, Ghulam Ahmed Bilour, has reportedly trivialised the situation by drawing comparisons with Afghanistan and Saudi Arabia (wrongly in case of the latter), which also do not have a railway system. 

Secretary Railway Board, Shafiq Ullah, has requested the Supreme Court to direct the federal government to pay pensions from its budget, as it is doing for some other departments. Chief Justice Chaudhry made a wise decision in rejecting this request while adding that the PR is a commercial venture and should raise its own revenue.

This behaviour, as exhibited by Railways Minister and Secretary, is an example of the mindset of the PR's administration. It appears that the management does not understand the importance of the PR as a defence strategic asset, a source of moving commodities through its freight trains, and one of the most affordable options of travel for the poor of this country. Instead of cleaning its own house, the management is hedging its bets that the government will help it out the way it has helped PIA. 

This is the dilemma of Pakistan Railways. Those in charge have grand delusions of acquiring government bailouts but no fear of any accountability for their incompetence. This enables them to discard the rights of PR's employees, make life even more miserable for the poor travellers, and run the institution down clambering for personal profit through widespread corruption.

If four billion rupees is what will save PR, it must be provided with the required funds conditionally, demanding transparent accountability and shuffling of upper management, stringent checks on its services, and close review of competency of its employees. In this regard, a public-private partnership as in the case of PTCL, can also serve as a viable option. Pakistan Railways is on its last breath. A government bailout can extend its lifeline, but not cure its ailment. A drastic overhaul is needed if the country is to continue having a railway network.

Published in Business Recorder (2 November 2011).

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