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ISLAMABAD: At a high level meeting in the Presidency on Monday, to discuss woes of Pakistan Railways, President Asif Ali Zardari advised the government to release funds within seven days for payment of salaries and pension of the railway employees who have been agitating against non-payment of salaries to them.
Spokesperson to the President Farhatullah Babar said that today's meeting had been convened specially to examine proposals for salvaging Pakistan Railways with the help of the private sector.
Private sector entrepreneurs were also invited to the meeting to discuss public-private partnership model for revamping railways, he said.
The president also advised the government to arrange a loan of Rs. 6 billion for locomotive repairs and purchase of new locomotives. The loan will be used exclusively for this purpose and will not be diverted for any other purpose.
Zardari gave this directive when the Railways Minister Haji Ghulam Ahmed Bilour pointed out that because of non-availability of locomotives, the freight trains had been suspended and the revenue from cargo transportation had come down from Rs. 9 billion a year to almost zero at present.
He said that cargo service was the most critical element of Pakistan Railways to generate finances not only to support itself but also to make great profits.
Farhatullah Babar said that another decision taken during the meeting pertains to over Rs. 40 billion outstanding overdraft obtained from the State Bank by Pakistan Railways for which it has been paying an amount of Rs. 350 million per month.
The president advised that this matter be taken up in the Council of Common Interests as Railways services were utilized by all the provinces and issue was inter-provincial in nature, he said.
It was also decided that a meeting of private and public sector representatives be held at the earliest to firm up proposals of the private sector participation in revamping and restructuring of Pakistan Railways so as to turn it around into a real profitable venture.
The proposals will be finalized within a month, it was decided.
