The Success Story: Pakistan Railways
The Success Story: Pakistan Railways
The Success Story: Pakistan Railways
Story
Federal Minister
'Success is no accident. It is hard work,
perseverance, learning, studying, sacrifice and most
of all, love of what you are doing or learning to do'.
Pakistan Railways turnaround story is no different -
2013-2018 a journey from nightmare to dream. The five long
years have been rewarding more than my
expectation. I encourage you to take the time to read
the important information enclosed regarding
changes and initiatives. We have had a lot of change
and while it may seem chaotic at times, the goal is
always to build growth and be competitive.
When I took charge as the Minister for Pakistan
Railways, the department was marred by
maladministration, nepotism and excessive hiring.
The situation was worst of its own kind and
Railways was on the verge of privatization. To set
things right I appointed honest and hardworking
officials on key positions. As the government's 5-
year-term is about to end, the steps that we have
taken in all these years are now bearing fruit.
Unfortunately, Pakistan Railways was suffering
losses for a very long time so it was very important
to contain them. We used some part of our revenue
for upgrading trains, Railway Stations, maintenance
and repair of engines, induction of new locomotives
and provision of better facilities to passengers.
China-Pakistan Economic Corridor (CPEC) - a 'game
changer' will revolutionize the railway sector by
allowing passenger trains to move at a maximum
speed of 160 kilometers per hour.
Railway assets are worth billions of rupees
therefore, its privatization is not feasible. We have
always opposed privatization of national
organizations and believe that public-private
Revival of partnership is economically more viable. I am
confident that all the decisions that I have taken are
Pakistan Railways in the best interests of the organization and that day
is not far when Pakistan Railways will start making
It happened first time in Pakistan progress by leaps and bounds.
The Success Story 2013-2018 Pakistan Railways
Say: 'O Allah, Lord of all dominion! You give dominion to whom You will, and take
away dominion from whom You will, and You exalt whom You will, and abase whom
You will. In Your Hand is all good. Surely You are All-Power-ful.
BACKGROUND
Before proceeding ahead, it would be worthwhile to
look at the circumstances under which Pakistan
Railways was operating in June 2013.
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The Success Story 2013-2018 Pakistan Railways
decreasing, resulting in dwindling revenues. These of the achievements made in this regard:-
were the conditions under which the present
administration undertook the task of improving the The railway suffered huge financial setback due to
!
department's performance. disparity in earnings and expenditure. However,
the focus of the present administration was to
STRATEGIC DIRECTION reduce operational expenditure and improve
earnings, resulting in decrease in the Operating
Ratio a ratio between ordinary working expenses
After hectic consultations with all stakeholders, a
and earnings to 114 in FY 15-16 compared to 194 in
strategy was developed which touched four
FY12-13. We hope that this ratio will fall below
cornerstones i.e. containing the decline, stabilization
100 this year. (In fact, operating ratio is already
and re-orientation, institutionalization/rationalization
99.236 for the period ending Feb, 2018).
and growth/diversification. Following were the core
values of the strategic direction given by the Minister
The budgeted deficit for FY 2013-14 was Rs. 33.50
!
for Railways:-
billion which was projected to rise by Rs. 3.0
billion next year, and by Rs. 50.0 billion in the next
Concentrate on core business.
[
3 years. However, the deficit was brought down to
Integrated and holistic planning paradigm.
[
Rs. 32.53 billion. The same year, bills payable,
Qualitative upgradation of passenger operations.
[
amounting to approximately Rs. 5.0 billion were
To shift focus on freight.
[
cleared on account of TA/DA, GP Fund, Pension
To focus on indigenous manufacturing rather than
[
and electricity bills to WAPDA. This amount was
import of Completely Built Units (CBUs).
kept pending in the previous years. If this amount
Improving governance.
[
was held back, the deficit could have been brought
Innovative ideas consultation with universities,
[
down to Rs. 27.50 billion.
technology centres, experts.
Rationalization of services and fares.
[
Review of investment paradigm
[ focus on A sum of Rs 65 billion was allocated for
!
completion of ongoing projects and quick pay off expenditure in the budget for FY 2014-15.
projects. However, only Rs 59.11 billion were spent by
Production orientation changing to market focus.
[ cutting down expenses. Moreover, Rs 31.92 billion
Maximise use of assets.
[ were generated in revenue, exceeding the set target
of Rs 28 billion. This brought the deficit down to
Rs. 27.247 billion.
FINANCIAL PERFORMANCE
The strategy worked well and gradual improvement In FY 2015-16, out of Rs 69 billion allocated for
!
was recorded within the first financial year i.e. 2013- expenditure, only Rs 63.65 billion were spent. On
14. Due to prudent steps taken by the incumbent the other hand, revenue generation target was Rs 32
government to overhaul Pakistan Railways, the billion; however, Rs 36.58 billion were earned,
revenue of the national enterprise touched Rs. 40
billion in financial year 2016-17 as compared to Rs. 18 Pakistan Railways Financials
billion in FY 2012-13 a 122% increase in just four
years, with revenue pitched at Rs. 50 billion for F.Y 60
2017-18 i.e. an increase of Rs. 32.0 billion in five years
Rs. in Billion
50
or a growth of 178%.
50.0
40
40.1
36.6
31.9
30
The railway management took concrete steps to
22.8
18.1
20
increase revenue, control expenditure and deficit both,
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decrease losses, and provide better facilities to Year 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
passengers and freight customers. Following are some
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The Success Story 2013-2018 Pakistan Railways
resulting in a decrease in deficit to Rs26.993 workers of the department under the dynamic
billion. leadership of Federal Minister for Railways,
Khawaja Saad Rafique.
Following its policy of 'Increase Earnings, Reduce
!
Expenditure, P.R earned Rs 40.1 billion against the Pakistan Railways has never claimed that its
!
set target of Rs 36 billion during FY 2016-17. operations had resulted into surplus or profit. It has
always been highlighted that the revenues are
Considering the expenditure, there was an gradually increasing since 2012-13. In fact, deficit
abnormal increase in salaries and pension during is not a new phenomenon, it did not start in the
2016-17, which can be gauged from the fact that present tenure, but was inherited from the previous
the expenditure which was Rs. 44.217 billion on regime and is there since decades. In the year 2012-
this account during 2015-16, soared to Rs. 55.011 13, the deficit was Rs. 30.509 billion.
billion during FY 2016-17 an increase of Rs.
10.774 billion (24.5%) within one year. As a result
of this obligatory expenditure due to
budgetary/government action, the department's
deficit increased to Rs. 40.701 billion.
The financials of Pakistan Railways from FY 2012-13 to 2017-18 are given in the table and graph below:-
!
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The Success Story 2013-2018 Pakistan Railways
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The Success Story 2013-2018 Pakistan Railways
month from Karachi. As a result of advance deposit Railways has also agreed to transport 12 million
(FDA) based contracts, earning on freight has tons of coal to Rahim Yar Khan, Muzaffargarh and
increased, while simultaneously giving time for Jamshoro power plants.
better planning.
Under the current circumstances, loading and
$
In 2012-13, 46,617 wagons were loaded as
$ unloading at freight terminals is done manually.
compared to 264,256 wagons loaded in 2016-17. However, an alternative plan is being devised to
This is likely to increase to 308,312 by the end of automate this system gradually. Modern hopper
FY 2017-18.The freight sector's productivity is trucks for coal transportation having loading
expected to improve manifold in future. capacity of 70 tons and unloading time of 30
seconds are being used at Yusuf Wala Power Plant.
The signing of the Inland Coal Transportation
$ Use of such high-tech, high capacity rolling stock
Agreement (ICTA) between Pakistan Railways is likely to increase in the coming years.
Freight Transportation Company (PRFTC) and
SHANDONG RUYI for the Sahiwal Power Plant After a lapse of 10 years, high-speed diesel is again
$
is a milestone. This has the potential of generating being transported from Mehmood Kot to Taro
Rs. 13 billion in revenue per annum. The Jabba and Karachi to Taro Jabba. The agreement
transportation of coal from Bin Qasim Port to for movement of oil to Chak Pirana and Sihala has
Yusuf Wala was started in January 2017 and has also been renewed. Pakistan Railways has also
generated Rs. 8.0 billion in revenue till March signed a Fuel Transportation Agreement (FTA)
2018. The revenue is likely to reach Rs. 11.2 billion with Pakistan State Oil (PSO) for transportation of
by the end of FY 2017-18. 2 million tons of petroleum products per annum
besides signing a Fuel Supply Agreement (FSA) as
Besides Yusuf Wala power plant, Pakistan
$ well.
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The Success Story 2013-2018 Pakistan Railways
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The Success Story 2013-2018 Pakistan Railways
INFRASTRUCTURE
Joint surveys were conducted with district
$
The project of doubling of track from Khanewal to
$ governments in 2013 for identification of
Raiwind was completed expeditiously by ensuring vulnerable unmanned level crossings across
timely funds. 246km track was doubled including Pakistan. The surveys found out that 550 level
remodelling of 20 yards, construction of 85 new crossings 436 in Punjab, 45 in Sindh, 37 in Khyber
bridges and extension of 72 level crossings. The Pakhtunkhwa, and 37 in Balochistan were very
double line is now fully operational between prone to accidents.
Karachi and Lahore via Multan.
In Punjab, 75 unmanned level crossings were
$
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The Success Story 2013-2018 Pakistan Railways
upgraded at a cost of Rs. 610 million with funds project will be extended upon successful
provided by the Punjab government. Furthermore, completion of the pilot scheme. The Sindh
the Punjab government approved a PC-I at the cost government has also promised to develop a green
of Rs. 1,556 million for upgradation of another 150 belt from Landhi to Karachi City.
unmanned level crossings. Rs. 350 million have
been provided for the upgradation of 34 level Feasibility studies for new rail links from
$
crossings in the first phase. Islamabad to Murree and Muzaffarabad, Gwadar
to Jacobabad via Khuzdar, Besima to Mastung,
In Sindh, the provincial government has approved
$ Peshawar to Jalalabad, and Quetta to Kotla Jam for
a PC-I for upgradation of 44 unmanned level linking Quetta directly with Peshawar are in
crossings at a cost of Rs565 million. Funds of Rs. progress.
103.928 million have been received for
upgradation of 10 level crossings in the first phase. Feasibility study for upgradation of ML-2 has been
$
Agencies have been nominated and work will completed, Expression of Interest (EOI) was
commence shortly on these projects. floated and bidders have been shortlisted, now
Request For Proposal (RFP) for execution of work
In Khyber Pakhtunkhwa, the KP government has
$ on BOT (Build, Operate, Transfer) basis is under
approved a PC-I for upgradation of 6 unmanned preparation. A similar proposal for upgradation of
level crossings at a cost of Rs. 87 million. Rs. 1.2 Lahore-Faisalabad section on BOT basis is being
million have been received as preliminary charges considered with the assistance of IPDF
and work will be started on receipt of full amount. (Infrastructure Project Development Facility), a
subsidiary of the Ministry of Finance.
In Balochistan, no work has been undertaken till
$
date because of the provincial government's non- A feasibility study for upgradation of track from
$
cooperation in this regard. Rohri to Koh-e-Taftan via Quetta with study of
options to by-pass Bolan is in process.
In order to check trespassing, a 35-km-long
$
boundary wall has been constructed at a cost of Rs Another feasibility study for upgradation of
$
391.975 million at 18 sites, including major Shahdara Bagh-Narowal section has been
railway stations, for the protection of track and completed.
enhancing security at the stations.
In order to meet shortage of residential quarters for
$
An agreement has been reached with the Punjab
$ operations staff, 104 apartments for Class IV and
Horticulture Authority (PHA) for establishment of 108 apartments for Class III employees are being
green belts along the track from Shahdara Bagh to constructed at Lahore, Karachi, Narowal and
Raiwind to help improve the environment. The Hyderabad. Work is in progress and nearing
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The Success Story 2013-2018 Pakistan Railways
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The Success Story 2013-2018 Pakistan Railways
km), excluding grade separation and fencing existing double line to 160 km/h, excluding work
within the Hyderabad-Multan section (749 km). already done on Nawabshah Rohri section
5. Establishment of dry port near Havelian. (183km) in Phase-I.
6. Upgradation of Pakistan Railways Academy ii) Lahore Lalamusa (132km) construction of second
Walton, Lahore (Part-I). line and upgradation to 160km/h.
7. Procurement of rolling stock and locomotives iii) Lalamusa Rawalpindi (118km) construction of
(Part I). second line and upgradation to 120km/h (160 km/h
where possible) excluding work already done on
The preliminary design of Phase-II sub-projects is Kaluwal- Pindora section (52km) in Phase-I.
under preparation with the same consortium which is iv) Karachi Hyderabad (163km) construction of new
likely to be finalized by the end of May 2018 after double line for 160km/h.
which the PC-1 of Phase-II will be submitted to v) Locomotives and rolling stock procurement (Phase
Ministry of Planning, Development & Reform for II).
approval. vi) Upgradation of remaining works at Walton
Railways Academy (Phase II).
Phase-II sub-projects are as under:- vii) Upgradation of the existing Taxila Havelian
i) Hyderabad Multan (749km) upgradation of (55km)line to 120km/h.
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The Success Story 2013-2018 Pakistan Railways
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The Success Story 2013-2018 Pakistan Railways
body building, wrestling, judo, hockey and cricket international levels and won gold, silver and
besides other indoor and outdoor games. As a bronze medals. The sports budget has been
result, the players of Pakistan Railways increased to Rs 35 million from Rs 8.2 million in
represented the country at the national and the previous years.
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The Success Story 2013-2018 Pakistan Railways
REFORMS IN RAILWAY POLICE: March 2017 out of which investigation of 2,750 cases
has been completed and their challans have been
Modern security equipment worth Rs 250 million has
$ presented in courts.
been procured to fully equip the Railway Police.
Railway help centres have been established at all
$
SSG commandos have been deployed to train
$ major railway stations manned by Railway Police.
specially selected railway police personnel. Almost The police found 347 boys and 155 missing girls and
700 men have so far been imparted counter-terrorism repatriated them to their families. Furthermore, it
training. returned 649 boys, 413 girls and 89 women, who ran
away from their homes, back to their guardians.
National Testing Service (NTS) was employed to
$
ensure transparent recruitment of employees in 4, 708 passengers have received lost luggage worth Rs
$
Railway Police. Police inspectors, however, are 433,888,682.
recruited through the Federal Public Service
Commission. The federal government has been requested to bring
$
the salaries of railway police at par with their
Railway Police lodged 2, 895 cases from July 2015 to
$ colleagues in Punjab Police.
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The Success Story 2013-2018 Pakistan Railways
AZADI & CHRISTMAS PEACE TRAIN - A Christmas Peace Train was started on December
$
REFLECTION OF COUNTRY'S LOVE: 22, 2016, in a bid to show solidarity with the
Christian community. The train started its journey
from Margalla Station in Islamabad and made
Pakistan Railways started the Azadi Train on 14th
$
stopovers in Peshawar, Rawalpindi, Lahore,
August, 2014, which completed its countrywide
Multan, Rohri, Karachi, Kotri, Dadu, Larkana,
journey in September. The Azadi trains of 2016 and
Habib Kot, Sibi, Jacobabad, Sukkur, Multan and
2017 were also applauded at the national level.
Faisalabad.
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The Success Story 2013-2018 Pakistan Railways
an expenditure of Rs 25 million every month. The resolving issues of widows and persons with
payment of deferred amount from 2009 onwards disabilities.
amounting to Rs 90.16 million has also been paid.
In 2016-17, the Ministry of Railways took a giant
$
Benevolent Fund grant, which ranged from Rs
$ step by increasing employees' group insurance
880 to 4,000, was increased to Rs 4,000 to 10,100 from Rs 45,000 to Rs 400,000 (min) and Rs
per month from July 2016. Under this head, Rs 1,000,000 (max). For paying the premium of
463 million were distributed in 2016-2017. group insurance, the government has allocated Rs
130 million, which will facilitate the low-paid
The department has been paying an amount equal
$ employees.
to one month salary to employees who retired after
Jan 1st, 2006 as welfare grant. The department The burial grant for employees who pass away
$
also pays Rs 50,000 for the marriage of one child during service has been increased to Rs 20,000
of the current employee or pensioner. An amount from Rs 10,000.
of Rs 308 million has so far been distributed under
these two heads. Retired railway officers were honoured with
$
shields in a ceremony held at the Mayo Gardens
Pakistan Railways spent Rs 771 million on
$ Club besides honouring employees who
Benevolent Fund, Marriage and Farewell Grants performed acts of gallantry and bravery beyond
in 2016 -17. This fund has been increased to Rs the line of duty.
1,100 million for 2017-18, and will help in
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The Success Story 2013-2018 Pakistan Railways
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FUTURE VISION will lay down clear guidelines and timelines for
implementing various safety works to be carried
The continued focus and improvements in the last five out from this Fund. Unmanned level crossings,
years have brought Pakistan Railways to the centre specially on the mainline, should be eliminated
stage of the present government's achievements, and within a given time frame. Expert international
the organization is now fully geared to play its due role assistance is required to improve safety
in the economic development of the country. preparedness and maintenance practices.
Among other things, Pakistan Railways should now 3. A beginning has been made with regard to
focus on the following areas to further improve its station redevelopment. At least 15 stations are
performance: expected to be redeveloped during 2017-18. In
(i) Passenger safety an attempt to expand this programme, another
(ii) Capital investment in development works for 30 stations will be upgraded during 2018-20.
removing capacity constraints on main routes. Besides this, major stations are proposed to be
(iii) Improved service delivery in all spheres, provided with lifts and escalators, a PC-I for
including complete logistic solution, which has been prepared. Work in this direction
cleanliness, and passenger facilitation. should continue.
(iv) Finance, accounting and administrative reforms.
(v) Regional connectivity. 4. Pakistan Railways faces stiff competition from
other modes of transportation which are
2. For passenger safety, the Ministry of Railways dominated by the private sector. Transformative
should create a special safety fund with seed measures need to be undertaken to make
capital from the federal government, besides Pakistan Railways competitive to retain its
arranging balance resources from its own position. The following steps are needed:
revenues and other sources. The government
RAIL NETWORK
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The Success Story 2013-2018 Pakistan Railways
(i) Pakistan Railways should implement end-to-end Pakistan is the transport hub of south Asia. The
integrated transport solution for select future of Pakistan Railway lies in developing
commodities through partnership with logistics rail links with China, Afghanistan, Iran,
players, who would provide both front and back Turkmenistan, India and other Central Asian
end connectivity. Rolling stocks, operational countries to realise its full potential.
and commercial practices should be customized
to transport non-traditional products, including (iv) The rehabilitation of Karachi Circular Railway
perishable goods, agricultural produce, and mass transit projects in Peshawar and Quetta
minerals, steel, industrial products and motor have been brought under CPEC framework.
vehicles etc. as they offer new vistas of growth Pakistan Railways will provide all technical and
and expansion. advisory support to the provinces in this regard.
(ii) Pakistan Railways should expand competitive (v) The current railway system is mostly manual
passenger ticket booking facility to the public at which needs to be automated. In fact, we need
large through traditional reservation offices, e- massive IT enablement in all spheres of railway
ticketing and through cellular mobile banking. working. In this context, work has begun on
developing a Freight Operations Information
(iii) As part of accounting reforms, accrual based System (FOIS) this year. Work is also underway
financial statements should be rolled out by on developing new Management Information
June, 2020 giving top priority to MIS/ FIS System and Financial Information System to
Project which has hit snags and has been badly make the administrative work more efficient.
delayed. The passenger, freight and parcel revenue
collection system also needs to be fully
5. It should be our continuous endeavour to automated.
improve the Operating Ratio of the railway. The
tariffs should be fixed, taking into consideration (vi) There are anomalies and inconsistencies in the
costs, quality of service, social obligations and pay, allowances and channels of promotion of a
competition from other forms of transport. number of categories of staff which is causing
serious rifts amongst various groups. In order to
6. Work needs to be expedited on the following remove these anomalies, a restructuring
important aspects: committee has been constituted which has
completed almost 80% of its work. The
(i) Pakistan Railways is working on resuming the committee is keeping in view the requirement of
ECO train on Islamabad-Tehran-Istanbul route. new staff with new skill sets to cope with the
The reopening of this train will pave the way for technological upgradation of infrastructure,
transportation of goods to Central Asia, Turkey rolling stock and operating systems with the
and onwards to Europe via Iran. implementation of ML-1 Project. On receipt of
complete report, recommendations would be
(ii) Work on upgradation of ML-1 will be started sent to the Ministry of Railways/federal
after completion of preliminary design, government for implementation.
approval of PC-I and finalization of bidding
process under China-Pakistan Economic (vii) It is felt that the locomotive factory in Risalpur
Corridor (CPEC) regime. Pakistan Railways is and carriage factory in Islamabad are not
also looking for external investment for operating at their full potential. In order to make
upgradation of ML-2 and ML-3 under BOT these entities profitable, foreign expertise and
mode. capital is needed. An RFP for soliciting
proposals for upgradation of these factories
(iii) Given its important geo-political location, should be floated on priority.
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Mr. Muhammad Javed Anwar
Federal Secretary
0322-4500960
11-12 freight trains are being run daily. Now, the
Railway passengers can reserve seats and avail
tickets at home through recently introduced e-
ticketing system.
www.advoice.pk
Building a goal oriented team and setting right
direction and priorities for that team, introduction of
different work culture, absence of political
interference and rigorous mechanism of decision
making were some of the initiatives that had been
introduced in the past few years and resulted in
better productivity in given resources.