ISLAMABAD, Aug 20: Already facing a serious financial crisis, which has led to discontinuation of services on many routes, the ongoing floods have brought more bad news for Pakistan Railways.

Several hundred kilometres of railway line have been washed away. Besides, the government is reviewing its development budget, and according to an official, Pakistan Railways be among severely affected public sector organisations.

The finance ministry has started informing government-run organisations that they would not be receiving most of the funds marked in the public sector development programme (PSDP) 2010-11. Pakistan Railways was to receive over Rs13 billion for 29 different schemes under the PSDP.

When asked about damage suffered by the organisation from the floods, the official said that only when the floodwaters flowed into the Arabian Sea would the PR management be in a position to estimate the overall losses.

The PR has recently come under severe criticism for closing down services on many popular routes, and Minister for Railway Haji Ghulam Ahmad Bilour has blamed shortage of funds for the decision

According to recent estimates made by PR authorities, there is a shortage of 50 to 60 locomotives mainly for freight operations. The estimated shortage of coaches was 220 which has been reduced to 139 after cancellation of train services on various routes.

Only recently, the government has signed an agreement with a Chinese company, Dongfang Electric Corporation, for 75 diesel-electric locomotives. Of the 75 locomotives (ranging from 1500 to 3000 horse power) 25 will be 'completely built units' and the remaining 50 will be manufactured in the Pakistan Locomotive Factory, Risalpur. However, the official said, materialisation of the agreement depended on availability of funds.

As a long-term plan, a recommendation for 150 diesel-electric locomotives has been made by the Central Development Working Party for Executive Committee of the National Economic Council for replacement of aging locomotives.Moreover, a contract for maintenance of Chinese design locomotives has been signed with the Dongfang Electric Corporation to improve the availability and reliability of locomotives.

Similarly, a $134.45 million contract for 202 passenger coaches has been signed by the railway administration with the China Machinery Import & Export Corporation. Out of them, 52 will be received as 'completely built units' and the remaining 150 will be manufactured at the carriage factory in Islamabad.

A project for renovation of 400 passenger coaches, at a cost of Rs3434 million, is in progress at the carriage factory. Of them, 241 coaches were rehabilitated and put in service by June this year, but uninterrupted supply of funds is needed to complete the work.

Funds would also be required for timely completion of 65 railway stations which were burnt during unrest in the wake of the assassination of former prime minister Benazir Bhutto.

An amount of Rs1032.6 million has been allocated during the current financial year for renovation and maintenance of railway stations, but the project will depend on release of funds. Work on renovation and upgradation of Khudian Khas, Usmanwala and Kanganpur stations on the Kasur-Pakpattan section is in advanced stage, but funds are needed for its completion.