Pakistan Railway deathbed? We Investigate brought important investigations to the fore

ISLAMABAD: (Zahid Gashkuri, Mujahid Hussain, Abubakar Khan) Pakistan Railways is suffering from serious problems, with more than 1,100 cases of corruption, theft, and illegal recruitment reported during the last five years. Between 2012 and 2023, 1,157 train accidents were recorded, highlighting safety concerns. During this time, the institution has faced a huge loss of 400 billion rupees, while its expenses have doubled from its income.

The main causes of these losses include poor management, political interference, corruption, outdated infrastructure, and limited freight train operations. The situation was worst during the Pakistan Tehreek-e-Insaf (PTI) regime, when the annual deficit reached Rs 41 billion. During the Pakistan Muslim League-Nawaz (PMLN) and Pakistan Peoples Party (PPP) periods, the deficit also increased significantly.

During the last 13 years, the government has provided Rs 660 billion from the national exchequer to meet the railway deficit. This year’s floods severely damaged tracks and bridges, suspended 28 train services, causing a further loss of Rs 11 billion.

During the tenure of Sheikh Rasheed, the annual average deficit of PTI was Rs 41 billion. During the tenure of PPP’s Ghulam Ahmed Bilour, the annual average loss was Rs 28 billion, while during the five-year tenure of PMLN’s Khawaja Saad Rafiq, the loss reached Rs 32 billion annually.

Currently, Pakistan Railways spends Rs 5.5 billion per month on salaries of 55,000 employees and pensions of 116,000 retired staff. Biometric verification of 15,000 pensioners has not been completed, due to which lakhs of rupees are being paid to ghost pensioners. With 68 percent of the Rs 120 billion budget being spent on salaries and pensions, there are insufficient funds to upgrade trains and tracks.

In 2023, Pakistan Railways earned Rs 63 billion, up Rs 12 billion from the previous year, and a 251 percent increase in revenue. The corporation has handed over nine trains to private companies and is considering outsourcing half of its trains to boost profitability. Officials estimate that a complete replacement of the tracks would cost $9 billion to $11 billion.

Non-payment of bills, the process of disconnecting the power of Pakistan Railways has started

During the last decade, 596 railway employees faced corruption cases. Despite owning 168,858 acres of land, Pakistan Railways earns only Rs 3.5 billion annually from this asset. Land worth Rs 25 billion is illegally occupied by squatters, and many stations and services have been closed due to financial difficulties.

Foreign debt, interest payments, pension burdens, and procurement delays add to the challenges. Mismanagement, uncollected bills, and use of substandard materials in coal transportation have cost billions. Last year’s floods damaged the tracks, further affecting operations.

The auditor general’s forensic report has identified governance issues, including unclear profits and arbitrary increases in freight rates. A powerful diesel lobby removed electric trains from key projects, increasing annual diesel costs from Rs 9 billion to Rs 18 billion. From 2010 to 2020, passengers lost more than 41 years of time due to poor maintenance and accidents.

Land acquisition by railways is a major problem. During Ghulam Ahmad Bilor’s tenure, 2,500 acres of land were given away in one year, but only 1,787 acres of land could be taken back in nine years under subsequent ministers. Freight company inefficiencies, such as not meeting coal transportation targets, led to billions in fines.

Train punctuality is low, with mail and express trains running only 11% to 53% of the time. Safety concerns persist, including 478 accidents at level crossings with vehicles.

Since 1947, Pakistan Railways has been state-owned. This year, the company will face a loss of Rs 50-55 billion. Currently, there is no federal minister for railways; The Prime Minister directly oversees the sector, which lacks a dedicated advocate.

A review of past railway ministers reveals a history of corruption, mismanagement, and incompetence. Notable issues during his tenure include engine failures, land scandals, and sabotage of freight services. There was some improvement under Khawaja Saad Rafiq, but the 2022 floods wiped out the progress.

Comparisons with Indian railways often highlight Pakistan’s lack of modernization and efficiency. Despite playing an important role in transportation, Pakistan Railways suffers from corruption, incompetence, and lack of proper planning, making its future uncertain. has become uncertain.
Nauman Quddus and Tariq Wasim have also assisted in the preparation of this report.