No plan to privatise railways: Mehtab

LAHORE — Federal Minister of railways Sardar Mehtab Ahmad Khan has said that the government has no plans to privatise the railways or its allied wing and wants to increase its efficiency to make it a profit-earning institution.
At his maiden Press conference at railways Headquarters here, the minister said that the present government would follow a plan to improve the working of the department rather opting for its privatisation.
"We know about all the problems railways is facing today but despite all these adverse aspects we have no consideration or move to privatise it," he added. He mentioned that railways is currently facing a debt of Rs48 billion out of which it got Rs23 billion from the State Bank of Pakistan in shape of over-draft and Rs25 billion from foreign companies as loans.
"In this scenario railways is paying Rs6 billion in terms of interest which is a main burden on the department," he said. The minister said the department has turned down a recent proposal to increase fare. He, however, said that a proposal is under consideration to increase the freight charges which is still comparatively cheaper than other means of transportation.
While analysing the technical strength and efficiency of railways, he said 39 per cent trains and its allied technical facilities were operational and remaining 61 per cent were not operational owing to various reasons.
"We have a collective aim to lift railways out of loss which at present we are facing operational losses to the tune of Rs16 billion which we plan to overcome by the end of this year by evolving a strategy," he asserted. Sardar Mehtab said it is a good sign that the prime minister has restored unions in all the institutions including railways and urged the railways union to contribute in making the department financially viable.