Govt to provide Rs 6.1bn for PR

ISLAMABAD: The Cabinet Committee on Restructuring (CCOR) of Public Sector Enterprises here on Friday decided to provide Rs 6.1 billion through a banking consortium for rehabilitation of locomotives of Pakistan Railways (PR).

The meeting of CCOR of Public Sector Enterprises held here under the chairmanship of Federal Minister for Finance Dr. Abdul Hafeez Shaikh focused on revitalization of Pakistan Railways.

Keeping in view the importance of PR in the daily lives of general public, the government has decided to address on an immediate basis all financial needs of Railways.

The meeting also decided that Rs 4.0 billion will be provided through re-prioritization of Public Sector Development Programme (PSDP) of FY 2011-12 for improvement of tracks and rolling stock.

Besides, the meeting was informed that Rs. 15 billion have already been allocated for PR in PSDP release for which shall be fast tracked.

The meeting decided to increase the line of credit from Pakistan State Oil (PSO) to PR to Rs. 2 billion to ensure smooth supply of oil to PR.

It is expected that due to addition of locomotives, improvement of tracks and rolling stock and enhanced credit line from PSO, PR will again become a viable entity and provide reliable service to people.

CCOR directed the Ministry of Railways that the discontinued services of freight and passenger should be fully restored in the shortest period of time.

CCOR also decided to further strengthen the Board of PR which shall be notified within one month. Board shall have representation from all four provinces and will also include professionals and experts of Railways and a strong mix from private sector.

The executive committee of PR is also being strengthened to further improve management.

The CCOR reiterated that the Government of Pakistan was fully committed to reinvigorate PR to provide reliable, competitive and economical service of high standards to the people of Pakistan.

All members of CCOR showed satisfaction in the comprehensive plan to restructure PR to play its vital role in economic growth of Pakistan and service to the people of Pakistan.

The restructuring of PR shall be fast tracked to ensure implementation in the shortest period of time.

Minister for Railways, Minister for Law, Justice and Parliamentary Affairs, Minister for Privatization, Deputy Chairman Planning Commission and officials of the Ministry of Railways attended the meeting

Copyright APP (Associated Press of Pakistan), 2011