| Absence of Clear Mandate to Railway and Positive Institutional Behavior |
| Railway
is both capital and labor sensitive. To allow railway to be less capital sensitive, we
need to first rationalized and then modernized the assets of Railway to take advantages
of modern technologies. Pakistan Railway was built more than a century ago. At that time there was
far less competition from other modes. Consequently, railway network today include many
light density, unprofitable lines. Many assets including track components, locomotives,
rolling stock and maintenance facilities are obsolete and excessive in number. This create
high cost burden and contribution to low service reliability.
If Railway is to provide
transport services at competitive prices, changes in institutional behavior is far
important then technical solutions. We need to re-orient Railway as a customer-driven
commercial enterprise.
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| Continuing Failure of Railway |
Employment on Political Grounds |
| Railway is
the most competitive mode of transport. However, with abundance of employees and their low
skill levels, poor management and lack of modern locomotive ecumenist have made railways
budget a complete deficit for last two decays. |
For the last
thirty years, Railways have been exploited for employment on political grounds. During
1998-99 the railway suffered a record loss of RS 1.56 billion. All this is due to poor
management practices and lack of prioritization. |
| Inadequate Maintenance and Budget |
Railway Safety |
| There has
been inadequate maintenance and renewal of assets and declining locomotive utilization due
to shortage of spares. Lack of investment in maintenance, modernization and expansion is
causing shortages in rolling stock and wagons and other necessary equipment. |
There has
been increasing concern about the safety of rail travel in the last decade. The costly
microwave system to check accidents is not working, as it should due to poor management
practices. |
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