THE government’s plan to convert Pakistan Railways into a corporation under an independent board of professionals, instead of privatising it, must turn it around. It is no secret that PR is on the brink. It is accumulating heavy losses on a daily basis because of years of inefficient management, corruption, overstaffing, political and bureaucratic intervention, and so on. Passenger traffic has dropped to 92 trains from 230 and freight operations are now just one train from 96, owing to the shortage of locomotives (according to the Pakistan Economic Survey). Its revenues have fallen by 25 per cent while working expense has increased by 33pc. Employees’ related costs and pensions stood about 198pc of revenue earned in 2011-12 and salaries and pensions are being paid through an annual subsidy of Rs34bn.

The plan to corporatise PR is not new. Recommendations were first made by the second Nawaz Sharif government in 1997. The plan could not be implemented because of opposition by vested-interest parties that have enriched themselves at the cost of this public service. They are not going to accept the change easily, even now; the revival won’t be painless even if existing jobs are protected in the new scheme. The main plank of the revival plan appears to be greater involvement of the private sector for the “profitable utilisation” of its assets (track, passenger and freight trains, dry ports, property, manufacturing facilities, etc). The government will continue to fund the development of the aging railway infrastructure until it gets back on the rails. A sum of Rs31bn has been set aside for this purpose in the next budget.

The previous government also prepared a plan to revive PR in partnership with the private sector, but that scheme was implemented only partially. The operation of three passenger trains and one freight train was outsourced to private management. The project to modernise railway infrastructure and address the shortage of locomotives could not be executed because of the paucity of funds and resistance from within. So, while it is heartening to see the new government thinking about reviving the old glory, it will have to give complete freedom to the new board so that it can take independent decisions in a transparent manner. The first task for the board will be to revisit the cancellation of the order for the procurement of 75 Chinese locomotives as well as outsourced train operations and expensive land leased at a pittance to the private sector. The second important job for the board will be striking the delicate balance between the commercial interests of the railway’s private-sector partners and the state’s public-service obligation to provide lower-income people with a decent travel facility at an affordable price.