'Pakistan Railways experiencing huge deficit of Rs 62 billion'

Pakistan Railways has fallen into a serious crisis, as its deficit has reached rupees 62 billion against the annual income of Rs 20 billion during the current fiscal. "Rampant corruption, shortage of locomotives, mismanagement and heavy operational losses of passenger and freight trains are a few causes of the huge deficit," Sardar Ayaz Sadiq, MNA and Chairman National Assembly Standing Committee on Railways said while talking to reporters, here on Monday.
He said the government had announced Rs 53 billion bailout packages for the rehabilitation and restructuring of Pakistan Railways but unfortunately it was reduced to Rs 13.6 billions which, also, was not given to the Railways authorities due to financial crunch. "Later on, this approved package was revised and reduced to Rs 4.8 billions rupees out of which only 2.8 billions were granted in the form of instalments," he revealed. He said that during the last 10 years sufficient funds were not allocated to the Railways as per its requirement, which accumulated railway losses and affected its performance as a premier transport organisation.
Sadiq further said that the pension bill has swelled from rupees five billions to Rs 11 billions due to financial mismanagement and outdated administration. "The Standing Committee has recommended to the government to take over payment of pension to retired railway employees like Pakistan Army and some other organisations", he said. He further said that railways' management has demanded Rs 16.5 billion for payment of salaries to the employees but the government is reluctant to accept it. He disclosed that PR urgently needs Rs 18 billion for fuel purchases and Rs 19 billion for purchases of spare parts and other equipment for maintenance and repair of the locomotives. In response to question, he said that railways employees involved in the theft of oil had been caught red-handed. They have been suspended and action is being taken against them, he added.
When asked about daily-wagers that are not receiving minimum wage of Rs 7,000 per month as announced by Prime Minister Yusaf Raza Gilani, he said that strategy in this regard has been chalked out. A committee has been constituted and after its recommendation, 280 temporary employees would be regularised. With regard to the criterion of regularisation, he said at least three-year service would be necessary for the daily wagers for regularisation.
When asked about implementation on minimum daily wages, Chairman NA body said ministries of finance and labour had been informed to finalise the matter in consultation with PR authorities by end of June 2011. A formula of minimum wage of Rs 7,000 per month for every daily worker would be implemented in the first weak of July in letter and spirit, he added.
When asked about land grabbers and encroachment on railways lands, Chairman Railways, Shahid Hassan Raja said that Pakistan Railways own a total of 167,000 acres land out of which only 600 acres is in illegal occupation of land grabbers in the four provinces and would be retrieved soon.