Pricy lands of Pakistan Railways can help it to purge deficit

Pakistan Railways, which is termed as a white elephant, has owned a large agriculture and commercial land worth billions of rupees. However, it has no money to pay salaries and pensions to its employees or to run its business.

According to a report published in a newspaper, Pakistan Railways owned lands measuring some 0.14m kanals (17,625 acres) worth over Rs 66 billion according to the market value, but still is known as surplus.

It is vital to mention here that most of the railways’ lands have been grabbed by numerous federal and provincial organizations and departments. Furthermore, the grabbers are earning millions of rupees by using the land of railways while the corporation is near to closure.

The reality is that the management of Pakistan Railways does not have any intention to take control of its lands back for earning funds to overcome its increasing financial crises. The non-implementation is voiced about its dishonesty and incompetency in running the businesses.

Enough to wonder is that the corporation has run up an overdraft of more than Rs 42 billion over the past many years and is still looking towards the government for a bailout package to pull it out of the current catastrophe.

Despite the fact the incumbent itself is facing a severe economic crisis; it opted to help Pakistan Railways in getting loans on comfortable conditions from commercial banks to run its affairs. The corporation received Rs 6.1 billion in the head of loans to repair its locomotives and coaches.

If the corporation decides to fairly use its land for commercial purposes and ventures in partnership with private sector, it can generate adequate funds to meet its demands, pay salaries, pensions, and undertake development for enhancing its capacity.

The investors will have no dithering in making agreements with the corporations in its lands, if Pakistan Railways provides them assurance of their reserves. One of the fine examples is launching of a business train between Karachi and Lahore in joint venture with private sector.

Pakistan Railways will have to start more public-friendly projects in partnership with private investors if it wants to become profitable organization.

Short URL: https://www.newspakistan.pk/?p=9905

Posted by Faisal Farooq on Jan 20 2012. Filed under National, Pakistan, Society. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.