Railway (1) (Autosaved)

Pakistan
Railway
Groups 1 & 5
Presentation Scheme
01 02
Introduction Budget analysis
Financial Management
03
04
Operational analysis Conclusion
⁵Infrastructure, Workforce, Connecting All Ideas and 5E
Cargo, and Trucking Issues Approach
01
Introduction
Lack of a clear vision
● A recent World Bank report found that Pakistan's railway
sector lacks a clear vision and strategy for the future. (Source:
World Bank report: "Pakistan Railway Sector Diagnostic")
● Similarly, The Asian Development Bank has also noted that

Pakistan's railway sector needs a comprehensive and long-term
policy framework to guide its development. (Source: Asian
Development Bank report: "Pakistan Railway Sector
Strategy")
Inadequate investment in railway infrastructure
● Pakistan's railway infrastructure is in a state of disrepair. The track is old and
worn out, the rolling stock is outdated, and the signaling system is
inadequate. (Source: Pakistan Economic Survey 2022-23)
● The government's investment in the railway sector has been declining in

recent years. (Source: Pakistan Economic Survey 2022-23)
● The Asian Development Bank states that Pakistan needs to invest in its
railway infrastructure over the next five years to bring it up to par with
international standards. (Source: Asian Development Bank report: "Pakistan
Railway Sector Strategy")
02
Budget Analysis
Financial Position of Pakistan Railways
Comparison Between Railway and Road
Allocation
Fiscal Year Budget Allocation for Railways Budget Allocation for
(PKR) National Highway (PKR)
2020-2021 94 Billion 115 Billion
● Source: Ministry of Railway, Government of Pakistan ( Budget Allocation Report)

● Source: National Highway Authority
● Source: Economic Survey 2022-23
Comparison of Pakistan’s Railway Budget With
Other Countries
● The Chinese government released its
budget for fiscal year 2023-2024 on
March 5, 2023
● The Indian government released its
February 1, 2023
● The Japanese government released its
April 8, 2023
● The Pakistani government released its
June 10, 2023
Lack of Transparency in Financial Management
● Non-recovery of bills receivables: 2005-06 to 2021-22
Bills more than 5 years old - Rs 1.674 billion
Bills more than 3 years old - Rs 1.506 billion
● Excess expenditure against allocated budget at accounting unit level of Pakistan

Railway
Supposed to spend - Rs 11.751 billion

Overspending - Rs 6.109 billion
● Irregular award of contracts and short recovery of security deposit
Supply contracts worth - Rs 721,925,222 billion

Granted exemptions - Rs 29,525,555 billion
03
Operational
Analysis
Operational Challenges
Aging Railway Infrastructure

● 150 years old
● Need of repair or replacement
● Tracks, bridges, tunnels,
stations, and signaling
systems
Inadequate Signaling Systems
● Outdated and
unreliable
● Lead to delays
● Reduced efficiency
● Increased costs
● Risk of accidents
● For example, in
2022, a passenger
train collided with
a goods train in
Balochistan,
killing at least 45
people. The
accident was
blamed on a
Over staffing
According to 2023 report by the World Bank, PR has over 72,000
employees, which is more than twice the number of employees needed to
operate the railway efficiently
● PR is now overstaffed in many departments, while there are
shortages of staff in other areas
● Difficult for PR to operate profitably
● Leads to inefficiencies and corruption
● Overstaffing undermines the morale of PR employee e.g “
Locomotive Driver’s Union”
Understaffing and Skill Gaps
● Understaffed in many key areas
● Track maintenance workers, and signalmen
● Poorly trained
● Lack the necessary skills and experience.
● Lead to safety problems
● Current staff unable to manage the machines
efficiently
Influence of the Trucking Industry on Railway
Cargo
● Trucking industry → powerful lobby
● "Truck Mafia," has significant influence over
cargo transportation
● Preference for road transport over railways
● The trucking lobby's political and economic
influence plays a role in this dynamic
04
Conclusion
CONCLUSION - POLICY REFORMS
POLICY SOLUTION: The Standing Committee of the National Assembly for
Railways, considered the set-up of Railway Board in a meeting held on 12.4.1995.
“They were of the considered opinion that Railway man should head the Railway
Board being the highest technical body of a highly complex technical department”
· Railway Board headed by a Railway Professional, must be revived with full

authority eliminating the veto powers of planning Division and day-today references
to Ministry of Finance. Railway Board should have full powers to manage Railways
as was the case in the past, and they should go to Government only for policy
decisions.
Planning Commission has been a big impediment for railways development projects.
CONCLUSION- POLICY REFORMS
● The nature of problems arising on the railway is diverse and highly
technical. Four to five specialized engineering fields are involved apart
from the distinct and exclusive transportation, commercial and rating
problems peculiar to railway working. Moreover, the commercial nature
of railway operations has moulded its financial and accounting system
and sets it apart from the system followed in other spheres of
Government activities.
● It is imperative that to arrest further decline Railway Board headed by a
Railway Professional.
CONCLUSION- POLICY REFORMS
Standing committee of national assembly on railway sat in 1995 deciding to
establish a rail reform board same model which was being implemented in
India.
● Planning commission a big impediment for railway development as they

a veto power on all said project of railway. Vast departmental structure
of rail being run by non-professional is a great problem for Pakistan.
● Rail board which may include 3 independent boards called
infrastructure development board, railway operations and maintenance
board.
CONCLUSION - STRUCTURE
● No need for heavy investment but wise investment, as funds
should be invested into weaker sector as a signals and
locomotives insteads to heavy dualization programme.
● Sectional improvement is needed for than overall reform

contrary to the planning commission suggestion.
● Better think tank is needed to handle customer influx , railway

timing and locomotives within budget constract .
REFORMS
● Running of a large number of short distance stopping passenger trains in the past,
led to heavy losses to Pakistan Railways. There was hardly any justification to
run these trains keeping in view the development of extensive road network.
● Reduced availability of locomotives for Freight Business, AND Diversion of
greater number of locomotives to passenger traffic while the Freight got the hand
down.
● “Indian Prime Minister Mr. Narendra Modi, during his Independence Day speech
on 15th August 2014, said that he found that Planning Commission was a big
impediment in accelerated development of the country”
● Procedure for preparation of PC-1 itself is quite lengthy but their approval by
Planning Commission is very time consuming and Planning Commission has
“Veto” power, what rail needs is its independent board.
REFORMS
ROLE OF ESTABLISHMENT DIVISION:
There is an immediate need of independent board full authority to deal with all
establishment matters pertaining to railways it was made in 1980s. but these powers
were also withdrawn and given to Establishment Division thereby treating railways at
par with other government departments.
CONCLUSION - 5E METHODS
CRITICAL SURVEY OF PAKISTAN TRANSPORT POLICY 2018
Reason for Develop railway EFFECTIVENESS

Adoption structure on modern line.
EFFICIENCY(x)
Developing ML-1 and
ML-2 and ML-3 ETHICAL
CONSIDERATION (X)
DEVELOP COHERENT
PLAN Evaluation of alternation ✔
THANK YOU

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Pakistan

● Similarly, The Asian Development Bank has also noted that

● The government's investment in the railway sector has been declining in

2020-2021 94 Billion 115 Billion

2021-2022 96 Billion 155 Billion

2022-2023 100 Billion 118 Billion

● Source: Ministry of Railway, Government of Pakistan ( Budget Allocation Report)

● Excess expenditure against allocated budget at accounting unit level of Pakistan

Supposed to spend - Rs 11.751 billion

● Irregular award of contracts and short recovery of security deposit

Supply contracts worth - Rs 721,925,222 billion

Aging Railway Infrastructure

· Railway Board headed by a Railway Professional, must be revived with full

● Planning commission a big impediment for railway development as they

● Sectional improvement is needed for than overall reform

● Better think tank is needed to handle customer influx , railway

Reason for Develop railway EFFECTIVENESS

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