LAHORE, March 17: The Pakistan Railways is bearing the brunt of the federal government's changed priorities as financial allocations to the institution in the Public Sector Development Plan (PSDP) are gradually declining.
Lack of funds is resulting in the accumulation of over-aged rolling stock, marring its performance because the railways, which once had 58 per cent share in transportation business during the first five-year plan, is now having only 20 per cent of it.
Alarmed at the situation, the railways' authorities have approached the federal government to seek enhanced funding to improve its physical and financial position.
In a briefing to Prime Minister Mir Zafarullah Khan Jamali during his visit to the railway headquarters here last week, it was said that the railways' share in the PSDP in 2001-2002 was 8.5 per cent. It declined to 7.7 per cent in 2002-2003 and 7.2 per cent in 2003-2004.
PR chairman Khurshid Ahmad Khan told the prime minister that despite proportionally declined allocations and rising graph of ageing rolling stock, the railways' income (both from passenger and freight) increased by 50 per cent - from Rs9.9 billion in 1999-2000 to Rs14.8 billion in 2002-2003.
Its expenses registered only a 29 per cent increase - from Rs12.3 billion to Rs15.9 billion - during the same period, though fuel prices soared up many times and salary and pension bill surged twice.
Besides, he said, it managed to lower its deficit from Rs2.4 billion to Rs1.1 billion during the period under consideration while overdraft of the State Bank was also reduced by Rs4.5 billion.
The prime minister was told that the railways had 551 diesel locomotives and 55 per cent (303) of them were over-aged, while all 29 electric locomotives had also completed their life.
Around 30 per cent of the total 1,843 passenger coaches, 51 per cent of the 23,722 wagons and 65 per cent of the 7,879 kilometres long track also needs urgent repairs and renewal.
The situation is the worst when it comes to bridges, 80 per cent of which have completed their life and may result in accidents while the entire signalling and telecommunication system is obsolete.
Gen Pervez Musharraf, after a briefing on Dec 12, 1999 on the institution's state of affairs, had approved an emergency repair and rehabilitation plan, saying "it should be the main system of transportation for the country and accorded priority for allocation of resources."
According to this plan, nearly 240 passenger coaches have been rehabilitated, 187km sleepers and 85km rails have been renewed, while 320 tank wagons have been completely modified.
Mr Jamali was also informed that tenders for recommissioning of 55 locomotives and purchase of two rescue cranes were in the last stage of processing. The Islamic Development Bank had extended financing for both the projects. He was also informed about the supply of 69 locomotives, 175 coaches and 1,300 high-capacity wagons in CBU and CKD forms by China on suppliers credit basis.
The minister on that occasion announced Rs700 million for the completion of the dualization of the Lodhran-Khanewal track and promised to provide an average of Rs13 billion allocation each year.