ISLAMABAD, March 3: The profit of Pakistan Railways has registered an increase of 32 per cent during the last two years from Rs9.8 billion in 1999-2000 to Rs13 billion in 2001-2002, railways minister Ghaus Bakhsh Khan Mahar said.

Speaking at a National Assembly session on Monday, he admitted that Pakistan Railways (PR) had entered into a contract with M/s National Machinery Import and Export Corporation (CMC) of China in November 2001 for procurement/manufacturing of 175 new-design passenger carriages.

He, however, said there was no anomaly in the coaches’ design, which followed the PR specifications and standard moving dimensions.

The minister said out of 175 carriages, 40 would be supplied as completely buildup units (CBU), while the remaining were to be manufactured at the Carriage Factory, Islamabad, under the “technology transfer agreement”. Out of the 40 carriages, 14 were received in July 2002 and put into services after trials. With these carriages, a new train, Karakoram Express, was introduced from August 14, 2002 on Lahore-Karachi route. The train runs on alternate days.

He, however, denied that the colour of Pakistan Railways passenger coaches was being changed, except for the imported coaches of Karakoram Express, which were of white and blue colours. The colour scheme, selected by the former minister for communications and railways, aimed at making the new coaches more attractive.

To boost the earnings of the PR, different measures were taken, including introduction of new trains, auction of dining cars and luggage vans, auction of platform tickets, introduction of reduced rates for special trains and improvement in dry-port facilities, Mr Mahar said.

In addition to this, 240 passenger carriages have been refurbished, while another 450 are in process.

The minister said the PR was endeavouring to consolidate and implement the on-going development schemes, which did not suggest opening of any new section. However, the planning process has been initiated to cater to the future needs, arising out of Gawadar Port Project and trade links with Central Asian states.

Answering a question, he said 338 police officials of the PR were sent on compulsory retirement from March 2001 to November 2002. To another question, he said electricity connections to illegal constructions and kutchi abadis were disconnected on the grounds that the power supply should only be provided by the railways to its colonies, offices and workshops.

Mr Mahar said the railway purchased electricity from Wapda for its own use and was not a utility company to sell it to outsiders. Since, the bulk rate were higher than the domestic rates, therefore, railways had to bear the difference in charges.

Referring to a declaration issued by Junejo government that residents of kutchi abadis established before March 23, 1985, should not be summarily evicted, while resettlement plans must be developed to relocate the deserving dwellers, he said the condition did not apply to those who had encroached on railways lands in 1985.

The minister of state for parliamentary affairs, Raza Hiraj, said the government has no intention of declaring The Mall as a commercial area.

He categorically rejected this impression during the question-hour session in the National Assembly that there was any proposal floated by the Rawalpindi Cantonment Board to declare The Mall as a commercial area.

However, a number of members invited the attention of the minister that The Mall had already become a commercial area, to which Mr Hiraj said under the relevant rules, the area had been given on a 99-year lease which at the time of expiry was automatically extended.

To a question about the fee being charged from the existing owners for converting The Mall into a commercial area under lease, the minister said the fee was being charged in the shape of premium at 50 per cent of the market value if the land was already held on lease under the Cantonment Land Administration (CLA) Rules 1925 and 1937 or held on Old Grant Terms/Cantonment Code lease in the notified bazaar area under the management of the cantonment board.

However, conversion of sites from residential to commercial zones outside the bazaar area would require an ‘No Objection Certificate (NoC)’ of the military authorities as the land was under the management of the military estates officer.