PakSearch.com - Pakistan's Best Business site with Annual Reports, Laws and Articles
Welcome to PakSearch.com Pakistan's Premier Business Information
Service


For business information, annual reports, laws, ordinances, regulations and articles.




Google
 
Web Paksearch.com

20000219

CE assures full support to bring railways back to old standards

LAHORE: Chief Executive General Pervez Musharraf said here on Friday that almost all departments of national importance had come to the verge of collapse due to negligence and lack of interest shown by the previous government.

Addressing officers at the Railway Headquarters during the first-ever visit to the place by a head of the government, he said the Railways, a vital department of the national economy, is one of those ignored sectors.

He said, "Now we see signs of improvement and efficiency in Railways and the government will lend it all support and make it what Railways used to be once, as an efficient system of transportation."

On his arrival, the Chief Executive was accorded warm welcome by the Chairman, Railways, Lt. Gen. Javed Ashraf (Retd). He was given briefings by the General Manager, Operations, Iqbal Samad; Incharge Vigilance Section, Brig Tariq and Incharge Monitoring, Brig Tahir Saeed, General Pervez Musharraf addressed the Railways officers and mixed with them at tea later.

Recalling the days when he used to prefer travelling by Railways, General Pervez Musharraf said that he really can't forget the memorable journeys by train but it all changed because the Railways was badly ignored by the previous governments and no attention was paid to improve its efficiency, adding to the plight of travelling public manifold.

He said that the Railways can still achieve its old standards by reorientation, modifications and planning to bring it at par with other modern railway systems in the world. "The change has to come from the top and it will go down to every section."

He said the progress of the country depends on the progress of its departments. If they become efficient and corruption is weeded out. Pakistan will automatically progress.

Appreciating the projections shown by the General Manager, Operations and Directors of Vigilance and Monitoring sections, he said he could see a silver lining. Improvements are there and more are needed, he said. The change has to come, he said, and Railways holds a bright future, if not the present.

"We'll see your progress and take all possible measures to remove the problems and difficulties faced by Pakistan Railways," he said.

The government is committed to making healthy and progressive changes to improve systems by removing bottlenecks and hurdles in the efficient working of departments and organisations. He also lauded the performance of monitoring and vigilance cells.

Briefing the Chief Executive and other dignitaries, Iqbal Samad said that Railways biggest financial handicap is an overdraft of Rs 19.464 billion from the State Bank of Pakistan. The Railways has been paying Rs 3.325 billion annually as interest which includes Rs 2.731 billion as interest on overdraft. From 1985-86 till date, the Railways has paid Rs 11.199 billion only as interest, he explained. Such payments left a debilitating effect on Railways' performance.

After such huge withdrawals, he said, Railways was left with an annual deficit of Rs 3.5 billion between revenues and total working expenses.

He specially pointed out that Railways was being discriminated in the payment of custom duties, sales tax vis a vis NHA, PIA, OGDC and Wapda.

Iqbal Samad said that corruption and inefficiency, land grabbing in urban areas, theft of railway material, award of contracts on the basis of political affiliations, postings on key posts on sifarish and introduction of new passenger trains without financial viability have been gnawing into the vitals of the mamoth organisation.

After explaining the miserable situation, the GM Operations highlighted areas in which it required cooperation from the government.

He requested the Chief Executive to approve Rs 3.7 billion for Emergency Rapair Plan upto 2000-2001, for which PC1 has already been submitted.

He also asked for Rs 40 billion as Emergency Rehabiliation Plan whose approval in principle has already been accorded and PC1 was under preparation.

Enumerating details of the measures taken during the last few months to better the Railway efficiency, Iqbal Samad said that the corporatisation of Railways into four tiers of administration is being restructured with unity of command in the field and the headquarters. There are two General Managers looking after operations and manufacturing units including other non-core areas. The dichotomy of Railway Board and Ministry of Railways has also been removed.

He said that the State Bank of Pakistan has agreed to re-schedule overdraft and reduced the mark-up.

Railway unions have been brought under control and any irregular grant of overtime in workshops has been discontinued, bringing an annual saving of Rs 200 million. Similarly, Railway has launched campaign against encroachments and a vigilance directorate has been set up.

Iqbal Samad said that 137 stoppages of 28 Mail Express trains, given on political and other non-commercial considerations have been eliminated. Similarly, the Railways has checked ticketless travelling from January 21 to February 10, at bringing an additional income. At Railway stations the ticketing proceeds have increased by Rs 13 million.

He said that Tezgam train would be totally refurbished by March 23 and thereafter one train every three months. Free passes have been curtailed and saloons withdrawn temporarily. Other projects which are generating more resources include sale of scrap, contracting out luggage vans Rs 90 million, auction of stalls Rs 65 million and auction of dining cars Rs 50 million, previously yielding only nomical income.

Despite numerous positive steps, he said the Railways has accured during 1999-2000 additional financial burden of Rs 1390 million, including pay increase Rs 438 million, pensions Rs 488 million, fuel costs 244m, electricity Rs 220 million.

Taking advantage of the presence of the Chief Executive, the GM Railways sought permission to increase passenger fare rates by 15 percent.

He also pleaded for selling Railway land in order to utilise sale proceeds for its development and debt retiring. The GM asked the government to release Rs 770 million which the Ministry of Defence owed to Railways. He also sought Rs 120 million from the Food Department, Punjab, in lieu of warehouses built on Railway land.

For an equitable treatment to Railways, he requested that military traffic be allowed to be charged at public rate.

In the Chief Executive's briefing by the Vigilance Wing, Brig Tariq said that it has impounded 35 vehicles which were misused. He requested one-time waiver for the purchase of vehicles for the vigilance wing.

Chief Executive General Pervez Musharraf paid a passing visit to the Lahore Railway Station on Friday and saw 68-year-old steam engine installed outside the main building.

General Musharraf made the visit on his way to the Army Guest House from the Railways Headquarters. APP

Google
 
Web Paksearch.com




Home | About Us | Contact | Information Resources