760411290 Research Report on Pakistan Railway

8/13/2019 760411290 Research Report on Pakistan Railway

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HOW TO INCREASE THE EFFICENCY OF PAKISTAN RAILWAY

LETTER OF TRANSMITTAL

Mr. Farrukh NaveedResearch SupervisorDepartment of CommerceThe Islamia University !aha"alpur

29 Jan, 2010

Su#$ect% RESEARCH REPORT ON HOW TO INCREASE THEEFFICENCY OF PAKISTAN RAILWAY.

Reverend Sir,This research report is in response to your re&uest to find out the 'HOW TO

INCREASE THE EFFICENCY OF PAKISTAN RAILWAY(. This research report

"ill provide you the overvie" of the research pro$ect. This report "ill assist you

to understand the research.

)e "ill #e *lad to accept any su**estion and additional information from your

side. If you have any &ueries relatin* to the research it "ill #e our pleasure to

respond you.

Thank you for this opportunity and confidence "hich you sho" to us.

+ours sincerely

SOLEMN GROUP

BUSINESS RESEARCH REPROT

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The current study remains limited in its scope as it looks at the pro#lems faced

,akistan Rail"ays and there solutions not at the or*ani-ation as a "hole. To

undertake the task team "ent throu*h the eistin* literature on ,akistan

Rail"ays revie"ed the current state of affairs throu*h availa#le data

consultations held "ith online researches a#out Indian turnover of rail"ays and

the or*ani-ation.

,akistan Rail"ays have #een runnin* losses since mid seventies. This persistent

failure o"es to a#sence of a clear direction for the or*ani-ation a pessimistic

or*ani-ational ethos resultin* from years of decline and political interference in

decision makin* to the detriment of commercial feasi#ility.

/r*anisationally roles and responsi#ilities remain diffused "hich create issues for

accounta#ility. 0 num#er of decisions have #een centrali-ed in the !oard or the

1ecutive Committee of the !oard that a#solves officers at the operational level

of any accounta#ility. Financially ,akistan Rail"ays have alarmin* fi*ures and

over the years it has #ecome chronically dependent on overdraft from the State

!ank of ,akistan. The fiscal space for operations and maintenance has #een

constricted2 declinin* from 345 in 6736839 to only 6:5 #y 677;87


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RESEARCH OBJECTIVES:

The study is part of a lar*er consultancy #ein* undertaken in con$unction "ith a

separate team. The terms of reference assi*ned to this team have *enerated the

follo"in* outputs%

)hat are the mean hurdles faced #y ,akistan Rail"ay in deliverin* its

efficient performance=

)hich factors are responsi#le for these inefficiencies=

>o" to overcome these inefficiencies=

)hat are the different procedural steps for turnover of ,akistan Rail"ay=

Time Frame

The Research will be completed i oe moth starti! "rom starti!

"rom 22#12#2$$% to 2%#$1#2$1$&&

Preparatio o" research proposal ' da(s

)ata collectio ' da(s

)ata aal(sis * da(s

Cocl+sio 2 da(s

,ial report composi! - da(s


.


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Introduction

Pa/ista Railwa(s ha0e r+ losses sice the mid se0eties& These persistet losses ha0e

ass+med a chroic stat+re ad coti+e to erode or!aisatioal assets e""iciec( ad

morale& A 0icio+s c(cle has res+lted wherei or!aiatioal problems icl+di!

str+ct+ral ad le!al stat+s create the loss ad the "iacial de"icit "+rther adds to

ie""iciec(& O0er the last twet( (ears a +mber o" st+dies ha0e bee cod+cted to

impro0e the state o" a""airs b+t these ha0e ot bee e""ecti0el( implemeted& The Board

has +der!oe 0ario+s tras"ormatios ad there has bee a icrease i cetraliatio&

This has added to the co"+sio while the declie o" Railwa(s coti+es&

The !eeratio o" railwa(me who had see better da(s o" Pa/ista Railwa(s ha0e either

retired or will do so i the ear "+t+re& ,or most emplo(ees o" Pa/ista Railwa(s losses

ad deterioratio costit+te a imm+table realit(& ,aith i cha!e ad impro0emet

hardl( e3ists& Re0i0al o" a or!aiatio that has resi!ed to a de"icit ad "ail+re poses a

challe!e "or the co+tr(4s political leadership as well as its maa!emet& Howe0er

re0ersal has to be p+rs+ed& There has to be 5or!aiatioal t+raro+d4&

This report hi!hli!hts /e( "actors ecessar( "or e0et+al t+raro+d b+t does ot !o ito

details o" the etire or!aiatioal str+ct+re i its recommedatios& Howe0er it "oc+ses

o the desi! ad role o" the ape3 str+ct+re& The sie o" the or!aiatio ad the chroic

at+re o" declie that has persisted "or thirt( (ears call "or the re0ersal process to be


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care"+ll( desi!ed i phases& It has to start with modest tar!ets ad +complicated

approaches& E0e "or this stro! leadership will be re7+ired&

T+raro+d strate!ies will ha0e to be!i with a clear directio "or e0et+al re"orm ad as

the seior maa!emet o" Pa/ista Railwa(s p+rs+es this directio it will eed

itermediate strate!ies& The most immediate will ha0e to be a a+toomo+s str+ct+re at

the top le0el that is madated committed ad competet to 0is+alie 12 ad implemet

re"orm& Oce the directio !ets determied the a( or!aiatioal cha!e will eed to

be p+rs+ed with clear ob8ecti0es deri0ed "rom a a!reed directio& At this poit cha!es

i the o0erall stat+s ad "ramewor/ o" the or!aiatio do ot appear to be "easible b+t

cha!es withi these bo+ds will be eeded&

A re0iew o" the etire str+ct+re ma( be ecessar( a"ter *#' (ears& E0et+al "orm o" the

or!aisatio4s stat+s ad "ramewor/ will deped o the res+lts ad directio o" the

re"orm ad the the pre0alet e0iromet&

,iall( woes o" Pa/ista Railwa(s ha0e a +mber o" so+rces b+t the most de0astati!

has bee a political tred o" whimsical iter0etios& 9itho+t a cha!e i the !o0erace

c+lt+re positi0e re"orm will remai el+si0e& Railwa(s4 decisio ma/i! has to shi"t "rom

the c+rret politicall( imposed processes to maa!erial processes that ha0e

or!aiatioal e""iciec( as the !oal& The whole trasitio will re7+ire stro! s+pport at

the political le0el to eable pro0isio o" reso+rces as well as is+late the or!aiatio

"rom whimsical e3tra#istit+tioal iter0etio&


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History

Extent of the Railway network in 1909

The idea o" a rail etwor/ was "irst tho+!ht o" i 1-6' with the possibilit( o" :arachi

becomi! a ma8or seaport& Sir Her( Edward ,rere who was appoited as the

Commissioer o" Sidh so+!ht permissio "rom ;ord )alho+sie to be!i a s+r0e( "or a

:arachi Seaport ad a s+r0e( "or a railwa( lie i 1-*-& The proposed railwa( lie wo+ld

be laid "rom :arachi +lta ad "rom there aother railwa( lie wo+ld be laid to

;ahore ad be(od&


?
http://en.wikipedia.org/wiki/File:India_railways1909a.jpghttp://en.wikipedia.org/wiki/File:India_railways1909a.jpg


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O >a( 1.th 1-?1 the "irst railwa( lie was opeed to the p+blic betwee :arachi


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I 1%*6 the railwa( lie was e3teded to >arda ad Charsada ad i 1%*? the

acobabad#:ashmore 2 "t ? i


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List of Trains

Allama Iqbal Express

Baaudin !a"ari#a Express

Baa$alpur Express

Balucistan Express

Bolan %ail

Buraq Express

&iltan Express

'aisalabad Express

'arid Express

Jaffer Express

(araci Express

(ara"oram Express

(us )al (an (ata" Express

(#ber %ail

*a"istan Express

+a$alpindi Express

am-auta Express

alimar Express

ial"ot Express

uba" (aram uba" +aftar

Te./am


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Inern!i"n!#

Iran # A broad !a+!e railwa( lie r+s "rom aheda to D+etta ad a

stadard !a+!e lie is "iished "rom aheda to :erma i cetral Ira li/i! with the

rest o" the Iraia rail etwor/& O >a( 1- 2$$' a >OU "or rail cooperatio was si!ed

b( Pa/ista ad Ira +der which the lie will be completed b( )ecember 2$$-& Now

that the rail s(stems are li/ed +p at aheda there is a brea/#o"#!a+!e betwee the

Islamic Rep+blic o" Ira Railwa(s stadard !a+!e trac/s ad Pa/ista Railwa(s broad

!a+!e&

Idia # Thar E3press ad the more "amo+s Sam8ha+ta E3press iteratioal

trais "rom ;ahore to Amritsar Idia&

A"!haista # C+rretl( there is o rail li/ to A"!haista sice o railwa(

etwor/ is preset i that co+tr( howe0er Pa/ista Rail has proposed to help b+ild a

A"!hai Rail Networ/ i three phases& The "irst phase will stretch "rom the Chama to

Spi Bolda/ i A"!haista& The secod phase will e3ted lie to :adahar ad the third

phase will e0et+all( coect to Herat& ,rom there the lie will be e3teded to :h+sh/a

T+r/meista& The "ial phase wo+ld li/ 1?'? mm


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The proposed lie will also be coected the port tow o" wadar 0ia )albadi ad

Ta"ta th+s coecti! the port tow to Cetral Asia&

Chia # There is o li/ with Chia howe0er o ,ebr+ar( 2- 2$$' cotracts

were awarded "or "easibilit( st+dies o a proposed lie "rom Ha0elia 0ia the :h+8erab

pass at 6'.$ m abo0e sea le0el to the Chiese railhead at :ash!ar a distace o" abo+t

'*$ /m&

T+r/e( # A Istab+l#Tehra#Islamabad passe!er rail ser0ice was proposed

recetl(& >eawhile a cotaier trai ser0ice was la+ched b( the Prime >iister o"

Pa/ista Fo+s+" Raa ilai betwee Islamabad ad Istab+l o 16 A+!+st 2$$%& The

"irst trai carried 2$ cotaiers with a capacit( o" aro+d '*$ t


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Traic

Passen)er

Passe!er tra""ic comprises *$ o" the total re0e+e a+all(& )+ri! 1%%%#2$$$ this

amo+ted to Rs& 6&- billio& Pa/ista Railwa(s carries ?* millio passe!ers a+all(

ad dail( operates 22- mail e3press ad passe!er trais& )ail( PR carries a a0era!e o"

1'-$$$ people& Pa/ista Railwa(s also operates special trais d+ri! occasios s+ch as

Eid +l ,itr Eid +l Aha ad Idepedece )a(&

Frei$%

The ,rei!ht B+siess Uit with 12$$$ persoel operates o0er 2$$ "rei!ht statios o

the railwa( etwor/& The Uit ser0es the Ports o" :arachi ad Bi Dasim as well as all

"o+r pro0ices o" the co+tr( ad !eerates re0e+e "rom the mo0emet o" a!ric+lt+ral

id+strial ad imported prod+cts s+ch as petrole+m oil @ l+bricats aa!er&


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The ,rei!ht Rates str+ct+re is based o mar/et treds partic+larl( o" road trasport

which is the Railwa(s mai competitor& The "rei!ht rates are o lo!er ri!id b+t "le3ible

depedi! o the lead pea/#o"" pea/ seaso ad 7+at+m o""ered&

O A+!+st 16 2$$% b( Prime >iister Fo+s+" Raa ilai betwee Islamabad ad

Istab+l 0ia Tehra& The "irst trai carried 2$ cotaiers with a capacit( o" aro+d '*$ t


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I its worst accidet i recet (ears three passe!er trais collided o 1. +l( 2$$*

deraili! 1. carria!es ad lea0i! at least 12$ dead& The :arachi E3press ra ito the

bac/ o" the D+etta E3press while it was stopped at a statio ear hot/i ad the Te!am

E3press tra0eli! i the opposite directio hit se0eral o" the derailed carria!es& Accordi!

to o""icials the cod+ctor o" the :arachi E3press misread a si!al&

uper *arcel Express

O 21 A+!+st 2$$* the +pco+tr( Super Parcels Expressderailed while crossi! the

>alir Brid!e ear ;adhi i the :arachi )i0isio& Ei!ht bo!ies were s+bstatiall(

dama!ed whe a a3le bro/e d+e to o0er loadi!& The rail tra""ic was s+speded "or 26

ho+rs& All dow trais were termiated at ;adhi ad the ra/es ad the locos made the

t+r aro+d "rom ;adhi&

%erabpur train derailment

O 1% )ecember 2$$' the traiKarachi Express a e3press ser0ice "rom :arachi to

;ahore derailed ear the tow o" >ehrabp+r i the Sidh pro0ice o" Pa/ista& At

aro+d 2J2* a&m& local time "o+rtee o" the trais si3tee carria!es le"t the trac/s some

was bei! ma!led b( the crash others simpl( slidi! dow a emba/met ito the

water& Sabota!e ad terrorism were r+led o+t as the reaso "or the crash with o""icials

belie0i! a "a+lt( trac/ was the ca+se o" the derailmet&

F$t$re 'e*e!o#ments


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Ne& Line'

I 2$$? it was ao+ced that a railwa( lie betwee wadar ad D+etta will be b+ilt

ad the Bosta#hob arrow#!a+!e railwa( lie will be co0erted ito broad !a+!e i

2$$' at a cost o" USK1&2* billio& Plas to icrease trai speeds istall more le!ths o"

do+ble trac/ ad to co0ert the co+tr(s railwa(s to stadard !a+!e are also c+rretl(

+der wor/&

E#e(ri)i(!i"n

I additio there are se0eral o!oi! e3pasio plas ito Cetral Asia ad

electri"icatio o" the etire Pa/ista Railwa(s estimated at a worth o" abo+t K2 billio

o0er the e3t "i0e (ears


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Iran

I spri! 2$$% a rail li/ betwee D+etta ad aheda was costr+cted ad allowed

Pa/ista Railwa(s direct access to E+rope ad the >iddle East& The !a+!e cha!i!

statio was costr+cted to the stadard !a+!e at aheda ad the T+r/ish ;a/e La trai

"err( armara( T+el +der the Bosphor+s& It is plaed

to r+ cotaier trais ad thro+!h passe!er trais& Pa/ista plas to co0ert the D+etta

lie to stadard !a+!e e0et+all(&


1?


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Literature +eie$

There are se0eral researchers who ha0e cotrib+ted i "idi! o+t problems o" Pa/ista

railwa( ad there sol+tios we are also icl+ded i some o" there "ollowers&

I economic sure# of *a"istan 2003409 the coditio ad per"ormace o"

Pa/ista railwa( is e3plaied as "ollowsG

A well per"ormi! rail trasport i"rastr+ct+re is 0ital "or a co+tr(4s de0elopmet&

I0estmet i a co+tr(4s i"rastr+ct+re directl( a""ects ecoomic !rowth as prod+cers

"id the best mar/ets "or their !oods red+ci! trasportatio time ad cost ad

!eerati! emplo(met opport+ities& Pa/ista Railwa(s pla(s a si!i"icat role b(

pro0idi! a sa"e ecoomical ad e0iromet "riedl( mode o" trasport&

Railwa(s are a 0al+able so+rce o" emplo(met while !eerati! lar!e amo+ts o"

re0e+e to the bee"it o" the ecoom(& A e""ecti0e railwa( s(stem "acilitates commerce

ad trade red+ces trasportatio cost


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"ar as passe!er tra""ic is cocered& Howe0er d+ri! +l(#>arch 2$$-#$% both the

passe!er tra""ic ad "rei!ht posted a icrease o" '&* percet ad 1%&6 percet

respecti0el(& This tred is reported i TableJ 16&6&

I order to coti+e impro0emets ad to cosolidate re"orms Pa/ista Railwa(s has

participatio i order to icrease its competiti0eess resposi0eess ad e""iciec(

Pa/ista Railwa(s is plai! to ta/e a series o" iterli/ed iitiati0es which will eable

it to complete e""iciec( i the "ast !rowi! trasport sector i Pa/ista& Pa/ista has

awarded a cotract to a iteratioal cosorti+m to carr( o+t a "easibilit( st+d( "or

establishi! a rail li/ with Chia& A rail li/ co+ld "+rther boost trade relatios betwee

the two co+tries b( "acilitati! the alread( !rowi! trade with Chia ad operatios o"

awadar Sea Port&


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The PS)P allocatios "or the Railwa(s sector were icreased "rom Rs&. billio d+ri!

2$$$#$1 to Rs&11&2-$ billio i 2$$-#$%& Pa/ista Railwa( de0elopmet pro8ects ha0e

s+""ered badl( d+e to red+ctio o" PS)P "or the (ear 2$$-#$% "rom Rs&11&2-$ to Rs&

?&*?$ billio as a res+lt o" which ma( pro8ects ha0e bee de"erred& >a8or de0elopmet

schemes icl+de trac/ reewal o" 26$ :> o" rails ad 22$ :>s o" sleepers plaed "or

mai lie& Additioall( cotract a!reemet "or proc+remet ad ma+"act+ri! o" '* )E

locos has bee si!ed ad "i0e locomoti0es o+t o" 1$ shall be ma+"act+red i Pa/ista

;ocomoti0e "actor( Risalp+r "rom completel( /oc/ dow /its d+ri! e3t (ear& ,irst

shipmet o" locomoti0e is e3pected i last 7+arter o" e3t (ear& 1$$ C:) wa!os

recei0ed "rom Chia will be ma+"act+red o" Pa/ista Railwa(s 9or/shop i

>o!halp+ra this (ear th+s completi! the scheme "or Proc+remetM>a+"act+re o" 1.$$

hi!h capacit( wa!os& Rehabilitatio o" 6$$ old coaches is +derwa( with 12$ coaches

e3pected to be rehabilitated i this "iscal (ear&

Aother o#!oi! de0elopmet pro8ect is the e3t phase i the do+bli! o" trac/ "rom

:haewal ;ahore =& )o+bli! o" trac/ has bee completed "rom :haewal to

Chichawati Railwa( statios ad trac/ is i operatio& I additio to these de0elopmet

pro8ects 0ario+s "easibilit( st+dies ha0e also bee +derta/e to e3plore "+t+re prospect

ad iitiati0es& Pa/ista Railwa(s is acti0el( participati! i Natioal Trade Corridor

Pro!ramme ad is tr(i! its best to icrease its share partic+larl( i the "rei!ht sector b(

assi!i! priorit( to the pro8ects related to rolli! stoc/ ad i"rastr+ct+re "or

impro0emet o" "rei!ht trai operatios to red+ce the cost o" doi! b+siess beca+se

Railwa( is cheaper ad sa"e mode o" trasportatio as compared to road&


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Pa/ista Railwa(s has "ialied "ollowi! teders "or impro0emet o" operatio o the

s(stem ad cotracts are at 0ario+s sta!es o" implemetatio&

Proc+remetMma+"act+re o" '* )&E& ;ocos&

Proc+remetMma+"act+re o" *.$ Hi!h Capacit( 9a!os icl+di! bra/e 0as&

Proc+remetMma+"act+re o" 2$2 hi!h speed moder coaches&

Replacemet o" old si!ali! !ear o ;odhra Shahdara Ba!h Sectio&

The eari!s o" Pa/ista Railwa(s sice 1%%-#%% till 2$$-#$% are !i0e i TableJ

%r5 %uammad An$ar aeed ha0e doe a !rate research wor/ o a research

pro8ect i respose to the !i0e s+b8ect

67erie$ and anal#sis of transport sector in *a"istan8


2$


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I the railwa( sectio he aal(ed too ma( t(pical problems "aced b( Pa/ista railwa(

ad s+!!ested sol+tios to these problems&

It is sated thatG

The possibilit( o" :arachi as a sea port was "irst oticed i the mid o" 1%th cet+r( ad

Sir Her( Edward ,rere who was appoited Commissioer o" Sidh a"ter its ae3atio

with Bomba( i 1-6' so+!ht permissio "rom ;ord )alho+sie to be!i s+r0e( o" sea

port& He also iitiated the s+r0e( "or Railwa( lie i 1-*-&

It was proposed that a railwa( lie "rom :arachi Cit( to :otri steam a0i!atio +p the

Id+s MCheab +pto >+lta ad "rom there aother railwa( to ;ahore ad be(od be

costr+cted& It was o 1.th >a( 1-?1 that "irst railwa( lie was opeed "or p+blic tra""ic

betwee :arachi Cit( ad :otri the distace o" 1$* miles& The lie betwee :arachi

Cit( ad :emari was opeed o 1?&?&1--%&B( 1-%' the lie "rom :emari to :otri was

do+bled&

The railwa( lie "rom Peshawar to :arachi closel( "ollows Ale3ader4s lie o" >arch

thro+!h the Hid+ :+sh to the sea& )i""eret sectios o e3isti! mai lie "rom

Peshawar to ;ahore ad >+lta ad brach lies were costr+cted i the last 7+arter o"

1%th cet+r( ad earl( (ears o" 2$th cet+r(&


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The 6 sectios i&e&Scide railwa(s Idia ,lotilla Compa( P+8ab railwa( ad )elhi

railwa(s wor/i! i a si!le compa( were later o amal!amated ito Scide P+8ab @

)elhi Railwa(s Compa( ad was p+rchased b( the Secretar( o" State "or Idia i 1--*

ad i a+ar( 1--? it was amed North 9ester State Railwa(s which was later o

reamed as North 9ester Railwa(s&

At the time o" partitio North 9ester Railwa(4s 1-6' ro+te mile was tras"erred to

Idia lea0i! ro+te miles *$6- to Pa/ista& I 1%*6 the railwa( lie was e3teded to

>arda ad Charsada sectio ad i 1%*? acababad#:ashmore 24#?44 lie was co0erted

ito broad !a+!e& :ot Ad+#:ashmore lie was costr+cted d+ri! 1%?% to 1%'.

pro0idi! a alterate ro+te "rom :arachi to +p co+tr(&

Car)o E+#ress,

A Car!o E3press Ser0ice itrod+ced sice 1%'6 is ow r+i! dail( "or trasportatio o"

!eeral car!o "rom :arachi Cit( to Badami Ba!h M ;ahore ad Lice Lersa& This car!o

e3press has bee re#str+ct+red with Hi!h Capacit( ad Hi!h Speed 9a!os alo! with

termial "acilities to icrease the preset load o" 1$$$ toes to 1?$$ toes A Similar

Car!o Ser0ice has bee iitiated betwee ,aisalabad >+lta ad :arachi ad 0ice

0ersa& Presetl( these ser0ices are bei! r+ "i0e times a wee/&

r :oman Amed has doe reall( bea+ti"+l e""ort to li"t +p the le0el o" per"ormace

credibilit( ad ima!e o" the Pa/ista railwa(s&

He has stated i his article i dow ews paper o the topicG


22


23/63


6%assie but tar/eted reforms are required to lift up te leel of

performance, credibilit# and ima/e of te rail$a#s8

News reports ha0e it that a cotaier trai ser0ice betwee Pa/ista ad Ba!ladesh 0ia

Idia is bei! plaed& Pa/ista Railwa( o""icials ad >iistr( o" ,orei! A""airs are

reported to be e3amii! the potetial o" this proposal& As a respose to this positi0e

de0elopmet the b+siess comm+it( i the co+tr( laded more i aticipatio&

Pa/ista has also to(ed with the idea o" li/i! with Ira Idia ad Chia with hi!h

per"ormace rail coectios& It ma( also be poited o+t that icrease i "rei!ht trais

with competiti0e ad0ata!e to +sers is the ol( wa( "orward to re0i0e the declii! stat+s

o" railwa(s& The per"ormace re0iew does ot show a promisi! stat+s i a( respect&

The Railwa(s which was oce the most e""iciet ad ecoomical mode o" trasportatio

has reached a ear morib+d stat+s& ,or those who spet their etire li0es ser0i! this

importat atioal departmet with hoest( pro"essioalism ad dili!ece it ma/es a

most pai"+l realit( to accept& This departmet o""ered oe o" the most +se"+l hardware

i"rastr+ct+res that were iherited d+ri! partitio& North 9ester Railwa(s which

became Pa/ista 9ester Railwa(s a"ter partitio i 1%6' was a pro"itable eterprise&

Spread o0er '?$$ ro+te /ilometres the etwor/ e""ecti0el( coected the ma8or cities

tows ad re!ios o" what was the termed as 9est Pa/ista&

The maa!emet or!aisatio ad cotrols o" the departmet were lar!el( doe o

pro"essioal lies& >ost o" the seior o""icers ad e!ieers had obtaied traii! ad

e3periece +der the British admiistratio& Ci0il e!ieeri! si!als tra""ic ad


2.


24/63


commercial cadres mechaical ad electrical e!ieers acco+ts ad "iace were the

/e( +its o which the railwa(s were str+ct+red& A Railwa( Board was costit+ted i

1%*% which was the hi!hest echelo o" maa!emet to o0ersee the per"ormace&

The departmet was iitiall( r+ with hi!h le0els o" e""iciec(& Adherece to merit hi!h

le0els o" pro"essioalism opeess to ew ideas ad approaches ad the abilit( to

respod to ew challe!es eabled Railwa(s to ac7+ire hi!h le0els o" e""iciec( i most

o" its ro+tie "+ctios& Accidets were rare ad le0el o" ser0ice depedable& The rot that

spread ad "iall( i"ested the railwa(s be!a d+ri! the decade o" 1%?$s& I order to

promote road trasportatio ad the role o" !oods carrier eterprises the !o0ermet o"

the time made deliberate attempts to e!lect ad disco+ra!e the railwa(s& This approach

coti+es to this da( witho+t restrait& Co+tless road de0elopmet pro8ects with d+bio+s

"easibilities are a citatio i this respect&

Passe!ers ad !oodsM"rei!ht mo0emet are the two essetial i!rediets o" ser0ices

deli0ered b( the railwa(s& As per orm the passe!er ser0ice is s+bsidised b( the s+rpl+s

re0e+e eared thro+!h !oodsM"rei!ht trasportatio& The railwa(s had to operate a

siable +mber o" !oods trais to maitai "iacial balace& Accordi! to so+rces i

Railwa(s more tha 6$ !oods trais


25/63


trasportatio& This approach ac7+ired !reater itesit( d+ri! the ia re!ime& The

Natioal ;o!istics Cell ost o" these 0et+res e0ol0ed to become "iacial

dra!s o0er the period o" time& The "iacial de"icit had its impact o all aspects o"

departmetal per"ormace&

Railwa( statios are the p+blic "ace o" the ser0ice& >ost o" the statios ha0e bee "o+d

i 0er( dilapidated state& Some o" the essetial "acilities are o#e3istet& Basic ameities


2*


26/63


"or passe!er com"ort sa"et( ad "acilitatio hardware "or the ro+tie operatio ad

maiteace are declii! i 7+alit(& )+ri! ispectios the cocered statio masters

ad other sta"" poited o+t towards the shortcomi!s b+t "ollow +p process "or remedial

is either e3tremel( slow or ot "orthcomi! at all& Barri! a "ew ma8or statios the

b+ildi! "acilities are also i r+#dow coditios& The b+d!et de"icit does ot allow

Railwa( a+thorities to +derta/e a( mass#scale "acilitiesMhardware re#0italisatio

pro!ramme which is +r!etl( re7+ired&

>ost +"ort+atel( s+ch loopholes ol( recei0e limeli!ht a"ter a ma8or accidet happes&

Oe "ails to +derstad the lo!ic o" importi! locomoti0es ad carria!es whe "actor(

"acilities "or both e3ist i the co+tr( with eo+!h potetial to ser0e the pre0aili! eeds&

Re0i0al o" Railwa(s m+st costit+te a atioal polic( iss+e& >assi0e b+t tar!eted re"orms

are re7+ired to li"t +p the le0el o" per"ormace credibilit( ad ima!e o" the railwa(s& The

"oremost iss+e pertais to the political will "or e3tedi! re"orms& Uless a "+ll#scale ad

ob8ecti0el( directioal approach is de0eloped cosmetic rederi!s wo+ld hardl( (ield

a( res+lts& This aspect is di""ic+lt to ascertai as the c+rret re!ime appears to be

iclied to a+ctio railwa( lads as priorit(& These lads had bee reser0ed "or

operatioal eeds o" the s(stem at 0ario+s locatios&

As lad assets are alread( dimiishi! the sell o"" shall be tatamo+t to c+rtaili! the

scale o" railwa(s i the "+t+re& This matter eeds a p+blic debate ad a be"itti! lobb(i!

respose "rom the ci0il societ( to re0i0e the lost iterest o" the re!ime i this 0ital atio#


2?


27/63


b+ildi! departmet& The Railwa(s possess a carria!e "actor( ad a locomoti0e

ma+"act+ri! "acilit(&

The( re7+ire stoc/ta/i! ad proper +p !radatio& I 1%'$s se0eral sesible sol+tios

were !i0e b( some E+ropea cos+ltats "or the s(stem& Howe0er o heed was paid to

their recommedatios& It is disappoiti! to ote that ol( :haewal#;ahore sector has

the "acilit( o" electricit(#powered locomoti0es& I a lo! spa o" *- (ears o" post#

partitio histor( o bi! leap was achie0ed i techolo!(& Corr+ptios epotism

declii! depedece o istit+tioal proced+res ad will"+l e!lect o" the s(stem b( the

decisio ma/ers ha0e ca+sed eo+!h harm& Adhocism has eclipsed the remaii!

potetial o" the departmet&

The re0i0al o" Railwa(s caot happe witho+t a so+d aal(sis ad cose7+et

plai!& The Plai! Commissio o" Pa/ista ma( costit+te a committee o" e3perts

"rom the co+tr( "or st+d(i! the sit+atio o" the sector ad proposi! remedial& The

co+tr( caot a""ord to dela( a holistic re0i0al o" railwa(s a( "+rther

r5 A$ais Amad has writte a article oG

6$ot Anal#sis of *a"istan +ail$a#8

I the article stre!ths 9ea/esses Opport+ities ad Threats "aced b( Pa/ista

railwa( are aal(ed& Alo! with that the "actors e&!& Political ,actors Ecoomic ,actors

Socioc+lt+ral ,actors Techolo!ical ,actors are also aal(ed&


2'


28/63


;7T Anal#sis of *a"istan +ail$a#

Introduction

Based o the s+ccess o" the apaese Railwa(s model Pa/ista Railwa(s iistr( o" Railwa(s to la+ch

ew b+siess 0et+res +si! s+rpl+s Railwa(s assets co+pled with capital i0estmet

"+ll( pro0ided b( the pri0ate sector&

The ob8ecti0es o" this )irectorate are thro+!h p+blic#pri0ate participatio to cocei0e

pla "iace ad maa!e commercial pro8ects which shall !eerate additioal re0e+e so

as to help pa( o"" pa( PR4s lo! o+t stadi! o0er dra"t with the State Ba/ as well as to

"+d de0elopmets ad +p!radi! o" core operatios&

tren/t

Itrod+ctio o" New Trais

Pa/ista Railwa(s itrod+ced ew lo! lead mail @ e3press trais betwee ma8or

termial o" Pa/ista Railwa(s d+ri! 2$$.#2$$6 ad 2$$6#2$$*&

Sial/ot E3press betwee Rawalpidi Sial/ot

a""ar E3press betwee Rawalpidi D+etta

Islamabad E3press betwee ;ahore Rawalpidi

>illat E3press betwee ,aisalabad :arachi


2-


29/63


Pa/ista Railwa(s coected :as+r Pa/patta ad ;odhra with :arachi b( ,areed

E3press trai& Ha0elia coected with :arachi 0ia Rawalpidi Sar!odha ad

,aisalabad& :ohat coected with :arachi b( Awam E3press& Pa/ista Railwa(s has

itrod+ced o#stop Islamabad E3press betwee ;ahore # Rawalpidi ad >illat E3press

Trai betwee ,aisalabd # :arachi with >oder Chiese Passe!er Coaches& The 8o+re(

time has bee red+ced to .hrs @ .$ mi+ets betwee ;ahore # Rawalpidi ad 1.hrs .$

mi+tes betwee ,aisalabad :arachi& 9hat we ha0e doe so "ar& >a"ias elimiated i

P+rchases& The"t ad pil"era!e bro+!ht dow to bare miim+m& O+tho+ses o" Railwa(

B+!alows allotted to emplo(ees res+lti! i sa0i! o" Ho+se Ret o" s+ch emplo(ees&

Railwa( Ho+si! Societies dissociated "rom Railwa( thereb( red+ci! the Electricit( ad

as e3pedit+re& Pri0atiatio o" Rawalpidi ad :arachi Hospitals&2$$$$ !host

pesioers elimiated&

Wea-ness

Pa/ista Railwa( has o Comport at all& People "eel 0er( di""ic+lt( while the( are

+si! Pa/ista railwa( ser0ice b+t the( !et 0er( tied d+e to +com"ortable seats&

It cos+me more time o" their c+stomers& The people caot reach their

destiatio o time& So it is the wasta!e o" time&

& Trai is alwa(s o0erloaded with the b+dle o" people ad C+stomer "eel 0er(

di""ic+lt to ta/e their seats& 9ith the r+sh o" people the c+stomer4s dress !ets

dirt(&


2%


30/63


There is o proper chec/ o" tic/ets i Trais& >ost o" the time the 2 persos claim

o" their seats beca+se the( ha0e same seat +mbers&

The sta"" o" Pa/ista Railwa( is I#e""iciet that4s the( !i0e the tic/ets o" same

seat to the 2 c+stomers&

Threats

Pa/ista Railwa( sho+ld la+ch some com"ortable Trais beca+se c+stomers "eel

com"ortable o+re( thro+!h com"ortable b+ses ad 0ehicle li/e )aewoo ad

Aero plaes& So the( capt+re the mar/et o" Pa/ista Railwa(&

Its Shipmet "acilit( is ot so !ood so people or b+siessme pre"er other

s+bstit+te li/e b+ses Aero plaes etc

The eari! o" Pa/ista Railwa( is alwa(s loses "or the o0ermet b+t o the

other side b+ses Aero plaes ad other ser0ices are !etti! more ad more

pro"its&

The e3pedit+re o" Pa/ista Railwa( is 0er( hi!h as compare to re0e+e&

O##ort$nity

I additio to abo0e twet( reser0atio o""ices ha0e bee plaed to be comp+teried&

acobabad >irp+r :has aha!ir Road >ehrabp+r

he+lm Sar!odha >ala/wal Shor/ot Catt

Nowshera ;alam+sa Bha//ar

Chiiot ;adhi Tado Adam


.$


31/63


oublin/ of Trac"

Pa/ista Railwa(s is presetl( wor/i! o ;ahore :haewal 121 :ilometers Sectio "or

do+bli! o" trac/& The pro8ect is e3pected to be completed b( >a( 2$$?& Ad0ertisi!

isideMo+tside trais ad o Railwa( lad& Operatio o" C(ber Ca"es at ma8or statios&

Operatio o" Twel0e Petrol P+mps o Railwa( lad&

+educin/ Expenditure

C+t dow "+rther o electric cos+mptio

Red+ced the wor/ "orce b( aother *$$$ emplo(ees thro+!h attritio ad

ratioaliatio&

S+i as coectios will be haded o0er to S+i Norther as to a0oid e3tra

e3pedit+re o b+l/ s+ppl(

Red+ctio i the +mber o" trai ser0ices o +#rem+erati0e ro+tes

Te Fears Prospecti0e pla o" Pa/ista Railwa(s

A st$dy tit!ed as

6To$ards an 7r/ani.ational Turnaround tructural Anal#sis of

*a"istan +ail$a#s8

St+d( cod+cted "or Pa/ista Railwa(s Ad0isor( ad

Cos+ltac( Ser0ices


32/63


Abd+s Sami :ha

Sheherbao B+r/i

,aia ha""ar :ha

Pa/ista railwa( is thoro+!hl( aal(ed the str+ct+ral problems "aced b( it ad sol+tios

"or them& It is stated that

The c+rret st+d( remais limited i its scope as it loo/s at the ape3 str+ct+res o"

Pa/ista Railwa(s ad ot at the or!aiatio as a whole& To +derta/e the tas/ the team

wet thro+!h the e3isti! literat+re o Pa/ista Railwa(s re0iewed the c+rret state o"

a""airs thro+!h a0ailable data cos+ltatios held with 0ario+s o""icials o" the or!aiatio&

Pa/ista Railwa(s ha0e bee r+i! losses sice mid se0eties& This persistet "ail+re

owes to absece o" a clear directio "or the or!aiatio a pessimistic or!aiatioal

ethos res+lti! "rom (ears o" declie ad political iter"erece i decisio ma/i! to the

detrimet o" commercial "easibilit(&

Or!aiatioall( roles ad resposibilities remai di""+sed which create iss+es "or

acco+tabilit(& A +mber o" decisios ha0e bee cetralied i the Board or the

E3ec+ti0e Committee o" the Board that absol0es o""icers at the operatioal le0el o" a(

acco+tabilit(& ,iaciall( Pa/ista Railwa(s ha0e alarmi! "i!+res ad o0er the (ears it

has become chroicall( depedet o o0erdra"t "rom the State Ba/ o" Pa/ista& The

"iscal space "or operatios ad maiteace has bee costrictedG declii! "rom '$ i

1%'1#'2 to ol( 1- b( 1%%*#%?&


.2


33/63


A importat prod+ct o" the costrictio o" "iscal space has bee the depletio o"

"+ctioal assets as +li/e the road sector Railwa(s has the resposibilit( "or

de0elopmet ad maiteace o" its ow i"rastr+ct+re& Presetl( most i"rastr+ct+res i

the +se o" Pa/ista Railwa(s ha0e become obsolete&

Pa/ista Railwa(s as a or!aiatio coti+es to be more o" a p+blic ser0ice departmet

ad commercial 0iabilit( remais a secodar( priorit(& Or!aiatioall( the "irst ma8or

cha!e i the ape3 str+ct+res appeared i 1%*% whe some o" the powers !i0e i the

1-%$ Railwa(s Act were tras"erred "rom Railwa(s to the Cetral o0ermet& I 1%?2

came the Ordiace that de"ied the str+ct+re o" the Railwa(s Board& Uder this

Ordiace a 6 member board icl+di! the Chairma who was also the Chie" E3ec+ti0e

O""icer o" Pa/ista Railwa(s&

Uder a correctio slip iss+ed i 1%?. the Board was shi"ted to ;ahore ad >ember

,iace came +der direct cotrol o" the >iistr( o" ,iace& Both the Ordiace as well

as the correctio slip cosidered the Chairma o" the Railwa(s Board as e3#o""icio

Secretar( to the o0ermet o" Pa/ista&

I 1%-2 +der a Presidetial Order the >iistr( ad Board were mer!ed ad Secretar(

Railwa(s became the Chairma also& This practice coti+es to date& I 2$$$ the sie o"

the Board was icreased while a E3ec+ti0e Committee o" the Board was created&


..


34/63


>embers o" the elar!ed Board icl+ded represetati0es o" the pro0icial !o0ermets

three members "rom pri0ate sector ad a +mber o" "ederal secretaries icl+di! secretar(

P@) Secretar( Comm+icatios ad Secretar( ,iace& Total +mber o" the Board

members was ei!htee&

This +mber was red+ced i 2$$2 whe pro0icial represetati0es ad pri0ate sector

members were remo0ed&

The c+rret str+ct+re is replete with aomalies that ha0e crept ito the str+ct+re thro+!h

0ario+s amedmets metioed abo0e& Res+ltatl( the Board has become +wield(& I

"act ,ederal Secretaries who are members ormall( do ot atted ad sed i their

represetati0es& I a( case the( do ot ha0e the re7+isite iterest or e3pertise to be

members o" the Board& Secodl( the E3ec+ti0e Committee o" the Board re0iews all

e3ec+ti0e decisios that di""+se resposibilit( ad acco+tabilit( processes&

Pa/ista Railwa(s eeds or!aiatioal t+raro+d ad that ca ol( be iitiated thro+!h

addressi! the iss+e o" "iacial losses& This calls "or retrechmet ad repositioi!&

The "ormer calls "or cost red+ctio while the latter demads re0e+e ehacemet& This

will red+ce the losses& Or!aiatioal restr+ct+ri! sho+ld be p+rs+ed ol( i" it is

re7+ired "or the abo0e p+rposes&


.6


35/63


I the ed s+ccess i the re"orm will deped o political will which caot be created

thro+!h a( process b+t has to be !i0e& I "act the most importat "actor i the

t+raro+d o" Idia Railwa(s has bee the +writte compact betwee the political

"orces to elimiate all political cosideratios "rom decisio ma/i! processes& I

Pa/ista also s+ccess will ol( be possible i" s+ch a commitmet e3ists&


.*


36/63


Pro&!ems o Pa-istan Rai!"ays

Pa/ista Railwa(s ha0e bee "aci! a persistet de"icit sice 1%'*#'?& This has !ra0e

implicatios "or the atioal e3che7+er the morale o" the or!aiatio reewal o"

essetial assets ad cose7+etl( the 7+alit( o" the ser0ice& It idicates e3istece o"

chroic problems that ha0e per0erted the or!aiatio4s per"ormace& 9hile a detailed

aal(sis o" the or!aiatio re7+ires a lo!er time period ad more reso+rces some

ma8or iss+es ideti"ied areJ

A&sence o C!ear 'irection

I disc+ssios with o""icers o" Pa/ista Railwa(s cocer "or the ab(smal state o" a""airs

was +i0ersal& Howe0er there was o clarit( o a 0isio "or a desirable cha!e& There

appeared to be the aomal( o" the desire "or impro0emet 8arred with latet "ears o" the

res+lts o" the re"orm& These "ears res+lt "rom a absece o" a clear +derstadi! o" the

ed poit o" the re"orm& Re"orm "or whatQ The 7+estio remais +aswered i the mids

o" most o""icers ad a collecti0e 0isio does ot e3ist&

The 0a!+e sese o" 0isio ad directio also per0ades the +pper echelos o" decisio

ma/i!& The o0ermet has still ot bee able to artic+late a clear directio "or the

atioal railwa(s& I a( case i the absece o" a o0erall atioal trasport polic( it is

di""ic+lt to "id a 0iable sol+tio "or railwa(s i isolatio&


.?


37/63



38/63


I"ormatio "rom st+d(G

6To$ards an 7r/ani.ational Turnaround tructural Anal#sis of *a"istan +ail$a#s8

St+d( cod+cted "or Pa/ista Railwa(s Ad0isor( ad Cos+ltac( Ser0ices


39/63


Persistet losses ad declii! stat+s o" p+blic ser0ice ha0e serio+sl( impacted the

or!aisatioal morale ad ethos o" Railwa(s& Fears o" poor !o0erace ha0e ot helped&

The presti!e o" Pa/ista Railwa(s is at its lowest ebb& ;i/e most other p+blic sector

or!aiatios perceptios o" corr+ptio ad ie""iciec( abo+d&

>a8orit( o" railwa(me ha0e little "aith i a( re"orm ad there is resi!atio to the

stat+s 7+o& Or!aisatioal t+raro+d i s+ch a c+lt+re will remai el+si0e& A(oe

ta/i! o the tas/ o" re"ormatio will ha0e to cha!e this be"ore embar/i! o a process

o" re"orm&

The compesatio str+ct+re o" the Pa/ista Railwa(s also hiders per"ormace ad

e!ati0el( impacts morale& The or!aiatio has !o0ermet sector pa( scales which are

either s+""iciet or moti0ati!& These low le0els o" salar( ha0e amo! other "actors

cotrib+ted to ie""iciec( ad corr+ptio& There are o per"ormace related iceti0es&

Po!itica! Ethos

>ost o""icials o" Railwa(s blame the historical "ail+re o e3traeo+s political "actors&

9hile it ma( ot e3ha+sti0el( e3plai the ca+ses "or the c+rret state o" a""airs it remais

a 0er( importat reaso "or the or!aiatioal declie& ecessar( political iter"erece i

Railwa(s is a realit(& Lario+s !o0ermets ha0e iter0eed whimsicall( "or limited

political !ais ito recr+itmet opei! o" +ecoomic ser0ices "or speci"ic

costit+ecies ad also ito labo+r politics& I "act the last metioed has bee +sed b(

ma( political parties& Alle!atios o" s+pporti! the more politicall( i"l+etial road

trasport sector to the detrimet o" Railwa(s coti+e to e3ist&


.%


40/63


Accordi! to a recet 9orld Ba/ st+d( the Pa/ista Railwa(s4 wor/ is costraied b(

b+rea+cratic proced+res ad b( power"+l political iterests& A +mber o" other st+dies

ad papers ha0e also hi!hli!hted e3teral iter"erece i the da(#to#da( operatios o" the

Railwa(s as a ma8or costrait to its per"ormace& O+r research re!ardi! the

or!aiatioal str+ct+res o" Pa/ista Railwa(s both past ad preset has also re0ealed

that the >iistr( o"te +s+rps the powers ad a+thorit( which sho+ld ormall( lie with

the maa!emet ad e3ec+ti! sectios o" the or!aiatio

Reform of the Pakistan Rail Sector, a presentation by the orl! "ank, #ec $00%

Ro!es. Res#onsi&i!ities and Acco$nta&i!ity

A +mber o" pre0io+s st+dies +derta/e "or or!aisatioal restr+ct+ri! o" Pa/ista

Railwa(s ha0e hi!hli!hted lac/ o" clarit( coceri! the realm o" the 5ob4 ad its

accompa(i! resposibilities "or most o" the positios i the ape3 or!aiatioal

str+ct+res& U"ort+atel( s+ccessi0e e""orts at reor!aisatio ha0e ot bee able to

address this iss+e ad the sit+atio has worseed o0ertime&

There e3ists at preset both a lac/ o" clarit( ad a o0erlap o" roles ad resposibilities&

This is a direct o+tcome o" +s+rpi! o" decisio ma/i! powers b( the !o0ermet

which ordiaril( sho+ld be e3ercised b( the Railwa( persoel madated to r+ the

b+siess& This sit+atio has e0e led to o#e3ercisi! o" a+thorit( b( certai seior

o""icials as eshried i their 8ob descriptios or charter o" d+ties so as to a0oid +d+e

acco+tabilit( "or decisios compelled b( e3teral actors& O+r disc+ssios with persoel

o" Pa/ista Railwa(s re0ealed that o""icers sh( awa( "rom per"ormi! their d+ties

beca+se o" the cetraliatio o" a+thorit(&


6$


41/63


Financia! State o Pa-istan Rai!"ays

Accordi! to B+r/i 1%%' report the c+m+lati0e losses +p to 1%%*#%? were Rs& .?&61*

billio& A ewspaper reported that the "iacial losses decreased to Rs& *&2 billio "rom

Rs& -&* billio d+ri! the te+re o" the pre0io+s !o0ermet&

The table below !i0es data "or the last "i0e (ears&

The State Ba/ o0erdra"t "or the (ear 2$$'#$- stood at Rs& 2*&.6' billio&


61


42/63


I 1%'1#'2 '$ o" the b+d!et was +tilied "or Operatios ad >aiteace 2$ o

9a!es ad 2 o pesios& B( 1%%*#%? the positio had cha!ed drasticall( where ol(

1- o" the b+d!et was spet o Operatios ad >aiteace 6* o wa!es ad 2$ o

Pesios& There are also alle!atios ad widespread perceptios o" political iterests

+si! Pa/ista Railwa(s as a emplo(er o" last resort where the or!aisatio has to

b+rde its compesatio b+d!et with icreased emplo(met witho+t either a h+ma

reso+rce re7+iremet or the capacit( "iaciall(&

The "iacial positio o" Pa/ista Railwa(s has bee wea/eed b( low re0e+es a hi!h

wa!e ad pesio bill ad a +ecoomical "are str+ct+re& The problem has bee

compo+ded b( a lac/ o" polic( directio& The losses ha0e meat a icreasi! State

Ba/ o0erdra"t ad low i0estmets& ;ac/ o" proper "iacial maa!emet s(stems ad

a+toom( are ma8or "actors i the poor per"ormace& The or!aisatioal str+ct+re ad

processes !i0e the absece o" a "iacial plai! ad maa!emet departmet ad

s(stem do ot pro0ide "or pro"it ad loss aal(sis or orietatio&

Railwa(s persoel iter0iewed complaied that the e3isti! "iace ad acco+ts

s(stem does ot s+pport the maa!emet ad plai! process o" the or!aisatio&

Istead as a res+lt o" its reporti! str+ct+re where it is aswerable to the >iistr( o"

,iace it operates as a re!+lator( bod( that disb+rses b+d!etar( allocatios ad

o0ersees e3pedit+res&


62


43/63


The "iace ad acco+ts departmet ad the o""ice o" the > Operatios +s+all( wor/

i isolatio& The > prepares dra"t b+d!et i separatio which is "orwarded to the

>iistr( "or appro0al& The b+d!et allocatios are doe b( the >iistr( o" ,iace based

o their ow aal(sis& The latter is +able to appreciate ad s+pport the b+d!etar(

re7+iremets o" Pa/ista Railwa(s

Re0e+e tar!ets are set arbitraril( with a discord betwee the Railwa(s operatioal side

ad the represetati0es o" the >iistr( o" ,iace& ;ac/ o" "iacial plai! ad

maa!emet s+pport i the "orm o" 7+ali"ied "iace e3perts has se0erel( costraied

Pa/ista Railwa(s4 abilit( to "orm+late a comprehesi0e ad realistic pict+re o" its

capacit( "iacial health b+d!et re7+iremets b+d!et prioritiatio ad "+t+re

pro8ectios&

Asset 'e#!etion

Pa/ista Railwa(s ha0e the resposibilit( o" de0elopi! ad maitaii! their

i"rastr+ct+re& The tas/ becomes more di""ic+lt as Railwa(s ha0e to deped o

cetralied str+ct+res "or appro0al ad "+di!& As metioed earlier this ma/es it less

competiti0e i respose to road carriers who do ot ha0e to i0est i basic i"rastr+ct+re

li/e roads&

,ollowi! a shi"t i the priorities o" the o0ermet a"ter se0eties whe the emphasis

shi"ted to the road sector i0estmet "ell sharpl( i the Railwa(s sector res+lti! i


6.


44/63


deterioratio o" i"rastr+ct+re ad "ail+re to e3pad or impro0e Pa/ista Railwa(s4

etwor/& Pa/ista Railwa(s ha0e to compete with road trasport "or b+siess& 9hile the

latter is char!ed a omial amo+t b( the o0ermet "or the cost o" road maiteace

the Railwa(s ha0e to bear the etire i"rastr+ct+re maiteace cost with o o0ermet

compesatio or s+bsid( "or r+i! PSO b+siess !reatl( red+ci! their abilit( to

compete&

Iade7+ate "+di! "or i0estmet i Railwa(s4 operati! assets has led to depletio i

both the 7+atit( ad 7+alit( o" rolli! stoc/& The Table below ill+strates the c+rret

dismal coditio o" 0ital Railwa( assets&


66


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O+r iter0iews with Railwa( persoel ha0e hi!hli!hted a!i! assets as oe o" the

critical "actors ca+si! poor per"ormace o" Pa/ista Railwa(s& 9itho+t addressi! this

iss+e o "+t+re impro0emets will be possible&

Loss of Assets trou/ +iots

,+rther d+ri! o+r "ield 0isits to Head O""ice o" the :arachi )i0isio it was alarmi! to

ote that the cetre o" all operatioal acti0it( which is the Cotrol Room operates

witho+t a( techolo!ical s+pport& There are o comp+ters or e0e t(pewriters or "a3

machies that co+ld assist i the speed( ad timel( rela( o" i"ormatio ad

comm+icatio amo! the Cotrol Room ad the di0isioal statios ad other

departmets essetial "or operatioal e""iciec( I additio essetial i0estmets i

i"rastr+ct+re ad rolli! stoc/ are re7+ired to itrod+ce ad impro0e the +se o"

techolo!( ad maa!emet i"ormatio s(stems i Pa/ista Railwa(s to ehace its

per"ormace&


6*


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Orientation (P$&!ic Ser*ice *ers$s Commercia!

Pa/ista Railwa(s are admiistered as a special departmet o" the "ederal !o0ermet

ad e8o(s partial a+toom( i its da( to da( operatios withi the o0erall polic(

"ramewor/ ad p+blic ser0ice obli!atios imposed o it b( the o0ermet& It ca

there"ore be classi"ied as a 7+asi#commercial or!aiatio bei! maa!ed with social

cosideratios& To date Pa/ista Railwa(s ha0e !i0e priorit( +der s+ccessi0e

o0ermet directi0es to passe!er mo0emet o0er "rei!ht o !o0ermet appro0ed

rates& Pa/ista Railwa(s are the ol( 5lo! ro+te passe!er carrier "or %-4 o" the

pop+latio ad its prici! "or this sector is 5stro!l( i"l+eced b( social cosideratios4&

This orietatio both at the polic( ad e3ec+ti! le0el has hampered the or!aiatio4s

abilit( to "+ctio as a commerciall( orieted ad pro"it ma/i! etit(& I most co+tries

passe!er b+siess is a o#pro"it ma/i! 0et+re&

>a8orit( o" railwa(s persoel iter0iewed "eel that Pa/ista Railwa(s sho+ld be a

h(brid etit( which is sim+ltaeo+sl( P+blic Ser0ice orieted ad ma/es pro"it thro+!h a

commercial orietatio& It is 0ital that 5the setti! o" political ob8ecti0es sho+ld be

separated "rom the maa!emet o" railwa( eterprises4 so as to a0oid co"+sio betwee

Railwa(s resposibilities "or commercial res+lts&


6?


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DETERMINENTS OF SERVICES IN RAILWAYS

,ollowi! are the Ser0ices )etermiats which shows the e""ecti0eess o" railwa(

ser0ices& 9e ca sa( that these are the !oals "or Pa/ista railwa( i" these are achie0ed

Pa/ista railwa( ca e0er be i loss&

These areJ

+eliabilit#, +esponsieness, Assurance, Empat# and Tan/ibilit#&

+ELIABILIT=

The ser0ice maa!emet sho+ld be reliable i s+ch a wa( that the( m+st pro0ide

ser0ices as promised& The( sho+ld e0er decei0e their c+stomers& ;i/e i Pa/ista

railwa(s there m+st be time mismaa!emet which is a ma8or iss+e i Pa/ista

Railwa( )epartmet&

I" there are a( ew ser0ices to be o""ered i ear "+t+re the c+stomers m+st be

pro0ided with the i"ormatio o the ri!ht time so that the( ca a0ail it easil(&

The railwa( ser0ice maa!emet m+st be able ad s/illed eo+!h to sol0e

c+stomers problems e&!& seat reser0atios a0ailabilit( o" seats i case o" eed

l+!!a!e sa"et( etc&


6'


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+esponsieness

The emplo(ees hired m+st be willi! to help their c+stomers al the time o" eed&

I Pa/ista railwa(s +"ort+atel( it does4t happe& Passe!ers "ace a lot o"

problems beca+se the( do4t "id the willi! ad cooperati0e sta"" to help them

o+t&

The emplo(ees i c+stomer ser0ices cater at railwa(s m+st also ha0e eo+!h

/owled!e to help the c+stomers i the ri!ht wa(& The( m+st ha0e /owled!e to

!i0e the c+stomers re!ardi! the trai timi!s the !ap betwee arri0al times

depart+re times ad weather coditios as well&

The emplo(ees m+st be read( all the time to help ad maa!e their c+stomers i

terms o" e0er(thi! related to the c+stomers ad their 8o+re(s&

Empat#

It meas

The ser0ice sector o" railwa(s m+st be so m+ch maa!ed that the( ca easil( !i0e

persoal attetio to all the passe!ers ha0i! a( /id o" problem i their

8o+re(s&

The ser0ices sta"" m+st show a cari! ad to+ch( "ashio i their appearace to

the c+stomers so that the c+stomers "eel "ree to cos+lt them i case o" a(

timi!s problem l+!!a!e iss+es seat reser0atio iss+es etc&


6-


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Assurance

The maa!emet sho+ld hire those emplo(ees who carr( the abilit( to istill ad

ca !i0e a better impressio to their c+stomers b( helpi! them correctl(& Those

who ca de0elop co"idece i the c+stomer4s mid that the( reall( care "or them&

;i/e helpi! them i the seat reser0atios sa"e ad so+d 8o+re(s with their

"amilies etc&

The( m+st !i0e the c+stomers "eeli!s that their 8o+re( with o+r ser0ice sta""

will alwa(s be sa"e ad so+d "or them ad their "amilies so that the( ca alwa(s

come to them&

The maa!emet m+st ass+re that their ser0ice sta"" is all co+rteo+s ad

eth+siastic to per"orm their d+ties& I Pa/ista railwa(s it does4t seem that the

sta"" is reall( wat to help the passe!ers beca+se the( do4t show serio+sess to

their d+ties&

Tan/ibles

It icl+des

The railwa( statios ad the e7+ipmet re7+ired m+st be o" latest techolo!( so

that e0er( thi! co+ld be maa!ed easil( ad with sa0i! time o" the departmet

as well as o" the passe!ers& The tic/eti! s(stem l+!!a!e chec/i! s(stem

reser0atio proced+res l+!!a!e sa"et( all sho+ld be hadled with latest

e7+ipmet a0ailable i the mar/et&


6%


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The emplo(ees m+st ha0e a eat ad pro"essioal appearace which ca attract

the c+stomers to "eel "ree to tal/ to them ad e3plai their iss+es easil(& The

dresses o" the ser0ice attedats sho+ld be pressed ad tid( which !i0es a

pro"essioal appearace&

The emplo(ees sho+ld also ha0e the habit o" +derstadi! the eeds o" their

c+stomers& The( ha0e a sese o" s(mpath( "or their c+stomers so that the( ca

per"orm their ser0ices i the best maer&

&onclusion

Accordi! to m( +derstadi! a mar/et maa!er m+st "ollow all these determiats

which are set o Iteratioal stadards& The >aa!er sho+ld prepare his "ollowers to

achie0e all these ser0ices "or their 0al+e c+stomers i order to maitai their ser0ices ad

!room themsel0es more ad more&


*$


51/63


7r/anisational Turnaround Te 'rame$or" for

+ecommendations

Or!aisatioal t+raro+d has two compoetsJ 5stem the declie4 ad impro0e

per"ormace to ma/e the or!aisatio 5id+striall( competiti0e4& T+raro+d has also

bee de"ied as 5per"ormace declie "ollowed b( per"ormace impro0emet4


52/63


Re#ositionin)

Repositioi! calls "or impro0emet i re0e+es& It demads e""ecti0e b+siess

de0elopmet strate!ies thro+!h mar/et di""eretiatio impro0ed mar/eti! locati! ew

mar/ets ad impro0i! mar/et shares& This list is either e3ha+sti0e or madator( as

lo! as the basic ob8ecti0e is met&

Re/or)anisation

Re#or!aisatio calls "or cha!es withi the or!aisatio as part o" processes to eable

s+ccess o" 5retrechmet4 ad 5repositioi!4 strate!ies ad ot a ed i itsel"& ,or

e3ample the mar/eti! or b+siess de0elopmet "+ctio ma( eed to be ehaced or

created "or icreasi! re0e+es or some "+ctios ma( eed to be hi0ed o""& It also

icl+des de0elopmet o" h+ma reso+rce ad tras"ormi! or!aisatioal c+lt+re& A!ai

the list is either e3ha+sti0e or a strict prescripti0e recipe&

En*ironmenta! Factors

E0irometal "actors e3ist o+tside the or!aisatio& These icl+de macro#ecoomic

cha!es le!islati0e cha!es or a( other e3traeo+s "actor that wo+ld impact the

per"ormace o" the or!aisatio& ,or e3ample i the case o" Railwa(s practices or

malpractices o" the competi! lad trasport ser0ices ca impact its re0e+es&


*2


53/63


The Indian E+#erience o T$rnaro$nd

Idia Railwa(s ha0e appeared as the most recet s+ccess i p+blic sector or!aisatioal

t+raro+d ad is a +i7+e e3ample i 0iew o" its sie& It reached a operati! ratio o"

'-&' "or 2$$' "rom %-&- i 2$$1& It is still hi!her tha the Caadia Paci"ic Railwa(s at

'6&* ad Chia Rail at ?$&' "or 2$$?& This meas that while the Idia t+raro+d is

remar/able it has some wa( to !o& B+t it is still "ar ahead o" Pa/ista whose operati!

ratio "or 2$$' was 1$* ad "or the (ear be"ore that it was %'&

Compari! Railwa(s li/e most etities across iteratioal 8+risdictios remais a tric/(

e3ercise& I Pa/ista ormall( Idia appears as the most rele0at e3ample beca+se o"

the shared histor( ad commo basis o" the British p+blic sector& This icl+des the

Railwa(s& Howe0er be"ore the compariso ca be made a "ew pro0isos to hi!hli!ht the

essetial di""ereces will eed to be metioed&

,irstl( the Idia Railwa(s did ot ma/e a loss till 1%%-& Pa/ista with a m+ch smaller

Railwa(s made its "irst loss i the mid se0eties ad has ot reco0ered to date& I case

o" Idia the loss res+lted "rom a e3traeo+s "actorJ the icrease o" p+blic sector pa(s i

the ,i"th Pa( Commissio& This res+lted i a a0era!e icrease o" 2% o" pa(& I a

or!aisatio with o0er 1&* millio emplo(ees this made a h+!e det& I the case o"

Pa/ista the "actors appear to be more edo!eo+s ad chroic&


*.


54/63


Secodl( the sie o" Idia Railwa(s o+tmatches Pa/ista Railwa(s b( more tha 16

times i +mber o" persoel& Thirdl( Idia has see a!!ressi0e ecoomic !rowth ad

acti0it( i the last 1* (ears which has had positi0e impacts o all spheres& There has also

bee a !rowth o" other str+ct+res li/e the Cotaier Corporatio o" Idia that ha0e helped

streamlie "rei!ht trasportatio i the co+tr(&

Fet the t+raro+d o" Idia Railwa(s "rom a loss ma/i! or!aisatio i 1%%- to a

pro"it ma/i! oe i less tha te (ears has i0o/ed worldwide iterest& The model does

pro0ide some isi!ht ito p+blic sector t+raro+d ad maa!emet o" Railwa(s ad

lessos ca be i"erred&


*6


55/63



**


56/63


+ecommendations

1& The O*erarchin) Iss$e, A Nationa! Trans#ort Po!icy

A o0erarchi! de"icit i Railwa(s plai! i Pa/ista has bee the absece o" a

5Natioal Trasport Polic(& )espite the "act that the Railwa(s remai a hi!hl( capital

itesi0e b+siess !o0ermet has e0er "orm+lated a holistic polic( that wo+ld aal(e

the o0erall trasportatio iss+es ad balace i0estmet ito road ad rail s+pported b(

a( research& )e0isi! a Natioal Trasport Polic( or e0e ideti"(i! its coto+rs !oes

be(od the scope o" this report b+t it is stro!l( recommeded that the iss+e be

cosidered b( the o0ermet&

Not ol( sho+ld railwa(s polic( be de0ised withi the "ramewor/ o" a o0erall trasport

polic( the implemetatio ad impact sho+ld be re0iewed withi this "ramewor/& Ideall(

the >iistr( o" Railwa(s sho+ld be s+bs+med ito a lar!er etit( which sho+ld be the

>iistr( o" Trasport ad Comm+icatio& That >iistr( sho+ld be resposible "or the

"orm+latio o" the Natioal Trasport ad Comm+icatio polic( & Ne0ertheless this ca

be see as a lo!#term !o0ermet priorit( ad !i0e e3isti! political realities ad

e3i!ecies the >iistr( o" Railwa(s ca retai its stat+s howe0er with clearl(

demarcated roles ad resposibilities&


*?


57/63


01 E!iminatin) Po!itica! Intererence

A( process o" re"orm that caot be is+lated "rom e3traeo+s iter"erece will "ail& At

the political le0el there has to be reco!itio o" the serio+sess o" the problem& Railwa(s

ha0e a 0er( importat role i the ecoomic !rowth ad de0elopmet o" Pa/ista ad

+ecessar( political iter"erece i decisio ma/i! will impede the co+tr(4s pro!ress&

Idia4s s+ccess i Railwa(s4 t+raro+d owes a lot to mar!ialisatio o" iter"erece&

21 A##roachin) Reorm o Pa-istan Rai!"ays

Pa/ista Railwa(s "ace chroic iss+es that ha0e led to coti+ed de"icits o0er three

decades& T+raro+d o" the or!aisatio will be a challe!e& The de"icit itsel" has ca+sed

demoralisatio ad resi!atio to the state o" a""airs which i t+r has es+red the

coti+it( o" losses ad depletio o" assets&

The 5t+raro+d4 will eed to be +derta/e i a +mber o" phases& Each phase will eed

to ideti"( a separate ob8ecti0e& At this poit the primar( ob8ecti0es will ha0e to be

retrechmet ad repositioi! "or elimiatio o" the "iacial loss o" Pa/ista Railwa(s&

This will ha0e to be achie0ed witho+t ma8or re#or!aisatio o" the core b+siess sice

that mi!ht pro0e co+ter#prod+cti0e as the or!aisatio has eared a poit o" collapse

where it ma( ot be able to bear the throes o" ma8or cha!es& It has to be a deliberate

icremetal approach&

I the immediate phase corporatisatio or pri0atisatio caot be p+rs+ed& These will

remai co+ter#prod+cti0e as witho+t tras"ormi! the or!aisatioal ethos ad with

coti+ed political iter0etio cha!es i or!aisatioal str+ct+res do ot cha!e the

ed res+lts& There are ma( e3amples i the co+tr( where corporatisatio has ot

is+lated or!aisatios "rom political iter"erece corr+ptio ad ie""iciec(&


*'


58/63


59/63


Ha0i! a clear directio becomes a imperati0e "or iitiatio o" the re"orm process& The

team that e0et+all( embar/s o the tas/ will ha0e to proo+ce oe clearl(& It is ot

appropriate or possible to s+!!est oe here b+t some o" the iss+es that wo+ld cocer the

de0elopmet o" the Railwa(s areJ

1& Role o" Pa/ista Railwa(s i the ecoom( o" Pa/ista ad iister de0elop this i cos+ltatio with the

,ederatio o" Pa/ista Chambers o" Commerce ad Id+str( iistr( o" Railwa(s embar/s o a strate!ic plai! e3ercise

with the /e( persoel ad sta/eholders o" Pa/ista Railwa(s& S+ch a e3ercise wo+ld

ot 8+st help i the "orm+latio o" a Lisio ad >issio "or Pa/ista Railwa(s b+t wo+ld

also comm+icate ad "oster the eed "or re7+ired str+ct+ral ad c+lt+ral cha!e as

recommeded b( this st+d(&


*%


60/63


41 Im#ro*ed O"nershi# at the Po!itica! Le*e!

I the Stat+s Paper 2$$2 o" Idia Railwa(s the the Idia >iister "or Railwa(s >r&

Nitish :+mar +sed the phrase 5we the railwa( me4 i the itrod+ctio& The phrase

re0ealed a stro! owership o" the political bosses ad hece the process iitiated b( >r&

:+mar s+cceeded i tras"ormi! the or!aiatio&

As re"orm o" railwa(s !ets +derwa( politicall( +palatable decisios will eed to be

made ad also the "i!ht "or reso+rces ad priorit( will ha0e to +derta/e& Ol( a stro!

political will ad owership "rom the >iister "or Railwa(s ad the Prime >iister will

eable a cha!e&

51 Im#!ementation Frame"or-

A a+toomo+s Board etr+sted with the tas/ o" or!aiatioal t+raro+d o" Pa/ista

Railwa(s will eed more i"ormatio tha cotaied i this report& A more detailed

aal(sis will be re7+ired& A comprehesi0e dia!osis o" the problems "aced b( Railwa(s

ad potetial remedies will appear i" the process collects eed&ac- rom the $sers o

Pa-istan Rai!"ays and a!so com#etitorsi additio to its ow o""icials ad the +ios&

O"nershi# o the #resent set o em#!oyees.who will be the iitiators o" cha!e is

essetial& Re"orm process ad ob8ecti0e will eed to be shared ad commol( +derstood

across the or!aiatio& It is imperati0e that the o""icials are ot !i0e terms o" ser0ice

that are percei0ed to be less "a0orable tha the preset state&


?$


61/63


Trainin) o oicers in mana)ementad also re"orm processes will eed to be "oc+sed&

It has to be compreheded that t+raro+d o" the Railwa(s will ta/e a .#* (ears period&

,+rther re"orm ca ol( be +derta/e be(od this poit ad will deped o the the

state o" a""airs&

61 S$))ested Ste#s

I" the abo0e recommedatios are appro0ed the implemeti! bod( will eed to iitiate

the "ollowi! stepsJ

1& Series o" wor/shops ad meeti!s to dissemiate the "idi!s o" the st+d( ad iitiate

the process o" re"orm&

2& Iitiatio o" a Strate!ic Plai! e3ercise

.& Repeal the 2$$2 Ordiace ad itrod+ce a ew law to "orm+late the ew Board i lie

with the abo0e recommedatios ad clearl( demarcated roles ad resposibilities ad

acco+tabilit(&

6& Iitiate a more detailed aal(sis to prepare strate!ies "or re"orm& The aal(sis m+st

icl+de "eedbac/ "rom a lar!er set o" sta/eholders tha this report& The sta/eholders m+st

icl+de all rele0at emplo(ees o" Pa/ista Railwa(s ad c+stomers&

71 F$ndin)

I order to bri! s+staiabilit( ad lo! term 0iabilit( o" the proposed cha!es it is

imperati0e that s+""iciet "iacial commitmet is made to the process& i0e the pa+cit(

o" "+ds a0ailable with the !o0ermet optios with de0elopmet parters ma( be

e3plored&


?1


62/63


+eferences

1& )ail( Times website T+esda( September 1? 2$$-

2& 5Natioal Trasport Polic(4 The Chartered Istit+te o" ;o!istics ad Trasport

Pa/ista ali/

*& 5;edi! "or Railwa(sG Pa/ista4 The 9orld Ba/ website 2$$1

?& 5Fear Boo/ 2$$?#2$$'4 >iistr( o" Railwa(s# o0ermet o" Pa/ista

'& Ec(clopedia II Idia Railwa(s Histor( seeJ

httpJMMwww&e3periece"esti0al&comMaMIdiaRailwa(s#Histor(MidM1*$16-'

-& 6To$ards an 7r/ani.ational Turnaround tructural Anal#sis of *a"istan

+ail$a#s8

St+d( cod+cted "or Pa/ista Railwa(s Ad0isor( ad Cos+ltac( Ser0ices


63/63


11& The Chroolo!( o" Pa/ista Railwa(s

B( Owais >+!hal

owaism1%'1(ahoo&com

arch $. 2$$'=

12& Pict+res pa!e at PRACS web siteJ

httpJMMwww&pracsltd&com&p/

1.& Histor( pa!e Pa/ista Railwa( web siteJ

httpJMMwwwMpa/rail&com

16& A research pro8ect i respose to the !i0e s+b8ect

o0er0iew ad aal(sis o" trasport sector i Pa/ista

B( )r& >& Awais

1*& >assi0e b+t tar!eted re"orms are re7+ired to li"t +p the le0el o" per"ormace

credibilit( ad ima!e o" the railwa(s

8y 'r Noman Ahmed

1?& Swot Aal(sis ad Pest Aal(sis o" Pa/ista Railwa(

httpJMMallotes&i"orme&comM"or+mMmaa!emet#otes#"*Mswot#aal(sis#ad#pest#

aal(sis#o"#pa/ista#railwa(#t'&htmlVp1?

1'& Pa/ista railwa( "orm wi/ipedia

httpJMMe&wi/ipedia&or!Mwi/iMPa/istaRailwa(

1-& W>ismaa!emet !rips Pa/ista Railwa(sW& Ecoomic Re0iew&

,idArticles&com& 21 )ec 2$$%&

?.
http://www.pracsltd.com.pk/http://www/pakrail.comhttp://www.pracsltd.com.pk/http://www/pakrail.com

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760411290 Research Report on Pakistan Railway

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