Rating:
  • Currently 0/5 stars.

Views: 401

Location: Faisalabad (Show Map)

Comment by Riaz Haq on November 27, 2011 at 4:46pm

As per Economic Survey of Pakistan, roads have become the most important segment of transport sector in Pakistan. In 1947, reliance on roads was only 8%, however, currently, it accounts for 92% of national passenger traffic and 96% of freight. However, neglect of other modes of transportation (particularly Railways) in favor of improvement of the road infrastructure has been a prevalent problem in the country s transportation sector.

In the year 1996-97, Pakistan Railway had 10.45% share of passenger traffic and 5.17% of freight traffic, which has dropped to 9. 95% and 4. 72% respectively by the year 2006-07, according to Economic Survey of Pakistan.

Primarily on account of increasing preference for road transport by passengers as well as goods forwarders over rail transport and owing to a diversion of already scarce resources towards the expansion of the road network, the performance and condition of Pakistan Railways has declined and its share of inland traffic (if compared with the early 70s) has reduced from 41% to 10% for passenger and 73% to 4% for freight traffic.

The above qualitative and quantitative analysis reveals that Pakistan Railways has lost its significance and it is no more an attractive mode of transport. The railwaymen have to realise this fact and forget Railways has absolute benefits over road transport and that the Railways is the biggest mode of transport. It is a requirement today that rail transport is restricted to and enhanced on the corridors where long haul and mass scale traffic both for passengers and freights is available, and where there is sufficient revenue generation to bear the O&M (Operation & Maintenance) cost.

http://finance.kalpoint.com/economic-updates/exclusive-articles/rai...
----------
The government, in close collaboration with the World Bank, is preparing a detailed road map for revitalizing the cash starved Pakistan Railways that requires a multi-billion dollar injection over the medium to long term to ensure a complete turnaround, official documents available with The News disclosed on Sunday.

The government had constituted a Core Team, as specified by the Planning Commission, which was assigned to formulate a Pakistan Railways Issue Note (PRIN) based on a rapid governance analysis. According to the PRIN executive summary Pakistan Railways (PR) has been facing serious crisis since 2007-08 as its passenger traffic reduced by 16 percent and freight traffic (on a tonne-kilometer basis) by 70 percent. Revenues of PR has fallen by 6 percent while working expense increased by 80 percent with labor related costs and pensions being 120 percent of revenue in 2010-11.

Under the current organization structure and financial arrangement, the executive summary states, it would be very difficult for PR to even return to break-even on working expenses without radical surgery. In the absence of substantial reforms, PR will almost certainly suffer a continuing decline, slowly but steadily becoming almost irrelevant to the general economy of the country.

http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=10601&Cat=13

Comment

You need to be a member of PakAlumni Worldwide: The Global Social Network to add comments!

Join PakAlumni Worldwide: The Global Social Network

Pre-Paid Legal


Twitter Feed

    follow me on Twitter

    Sponsored Links

    South Asia Investor Review
    Investor Information Blog

    Haq's Musings
    Riaz Haq's Current Affairs Blog

    Please Bookmark This Page!




    Blog Posts

    Pakistani International Students Flocking to European Universities

    Recent data shows that there are nearly 10,000 Pakistani students attending colleges and universities in Germany. This figure is second only to the United Kingdom which issued over 35,000 student visas to Pakistanis in 2024. The second most popular destination for Pakistani students is Australia which is hosting nearly 24,000 students from Pakistan as of 2023, according to the ICEF…

    Continue

    Posted by Riaz Haq on July 15, 2025 at 9:00am

    Pakistani Prosthetics Startup Aiding Gaza's Child Amputees

    While the Israeli weapons supplied by the "civilized" West are destroying the lives and limbs of thousands of Gaza's innocent children, a Pakistani startup is trying to provide them with free custom-made prostheses, according to media reports. The Karachi-based startup Bioniks was founded in 2016 and has sold prosthetics that use AI and 3D scanning for custom designs. …

    Continue

    Posted by Riaz Haq on July 8, 2025 at 9:30pm

    © 2025   Created by Riaz Haq.   Powered by

    Badges  |  Report an Issue  |  Terms of Service