ISLAMABAD: With domestic locomotive manufacturing facilities lying almost idle, Prime Minister Yousuf Raza Gilani has expressed displeasure over delay in procurement of locomotives from abroad and non-implementation of his decisions about increased credit limit for fuel supplies to Pakistan Railways.

A government official told Dawn that during a recent meeting the prime minister was flabbergasted when he learnt that his orders, issued in November and January to increase credit limit with the PSO from Rs1 billion to Rs2 billion for easing railways’ fuel problems, had not been implemented.

The prime minister “expressed displeasure over the delay in procurement of new locomotives and directed that procurement be re-advertised quickly and responsibility be fixed to identify officers responsible for preparing defective tender documents,” the official quoted the prime minister as saying.

He said that although the meeting was attended by ministers and secretaries nobody was able to point out that facilities at Risalpur had the capacity to manufacture at least 25 locomotives by working in single shift. And the capacity could be enhanced to 75 locomotives a year by running three shifts but the Risalpur facility is lying idle because of indecision by the government.

The prime minister was informed that employee-related expenses of about Rs2.2 billion, short- and long-term liabilities of about Rs11.5 billion and a Rs40 billion overdraft with the State Bank were the key issues impeding smooth operations of the department.

A top official of the PR told the prime minister that procurement and repair of locomotives were the major issues affecting normal operations.

At present, 208 locomotives are available but only 151 are in operation. The purchase of 75 locomotives from China has remained held up for want of condoning of deviations in procurement procedures but no government forum, including the ECC or the federal cabinet, is ready to take responsibility.

Moreover, tenders for procurement of 150 locomotives have recently been scrapped when all the four interested parties became non-responsive.

Another tender for rehabilitation of 27 locomotives under the development programme has also been cancelled because the equipment manufacturer is not compliant with several provisions of the agreement.

The sources said the prime minister directed the Pakistan Railways authorities to ensure that the recently launched Karachi-Lahore business train became a success and desired to launch four more similar services for which the railways had already offered four trains under the public-private partnership besides a parcel express.

A decision was made to outsource ticketing on eight sections. It was also decided that 52 coaches recently received from China, including four power vans, would be immediately inducted into operations.

Twelve locomotives were currently being rehabilitated by the joint venture partners of Prem Nagar Dry Port while 30 locomotives would be repaired in partnership with the National Logistic Cell.

The prime minister directed the PR to make arrangement for his visit to Prem Nagar as early as possible.

He said that a strategy for restructuring of Pakistan Railways be placed before the Cabinet Committee on Restructuring (CCOR) led by Finance Minister Abdul Hafeez Shaikh.

The prime minister directed the CCOR to take a decision on the appointment of the chief executive officer and chief financial officer of railways without further delay and asked the ministry of finance and the planning commission to continue to make timely releases to railways for PSDP projects and salaries/pension bill.

About notification of a new railways board, the prime minister directed that in case there was a delay in amending the law through the parliamentary process, an ordinance could be promulgated so that the reconstituted board can be notified without delay.

He asked the CCOR to expedite submission to the cabinet of its findings on the procurement of locomotives and directed operation of a shuttle train between Lahore and Shahdara to meet the demand of local people.

The meeting was informed that the privatisation commission was currently working on some proposals for corporatisation of the locomotive, carriage and concrete sleeper factories.