Islamabad: A meeting of Cabinet Committee on Restructuring (CCOR) of Public Sector Enterprises was held on 05th of August, 2011 in Ministry of Finance. This was in continuation of a high level meeting held on 4th of August, 2011 at Ministry of Finance. CCOR focused on revitalization of Pakistan Railways (PR). The meeting was chaired by Dr. Abdul Hafeez Shaikh, Finance Minister and attended by Haji Ghulam Ahmed Bilour, Minister for Railways, Mr. Maula Bakhsh Chandio, Minister for Law, Justice and Parliamentary Affairs, Mr. Ghous Bux Khan Mahar, Minister for Privatization, Dr. Nadeem ul Haque, Deputy Chairman Planning Commission, Finance Secretary, Secretary M/o Railways, DG (ERU) and officials of M/o Railways.
CCOR deliberated on all issues of revival of Railways in great depth. 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. Following decisions were undertaken to ensure financial sustainability of PR:-
(i) Rs 6.1 bn will be provided through a banking consortium for rehabilitation of locomotives;
(ii) Rs 4.0 bn will be provided through re-prioritization of Public Sector Development Program (PSDP) of FY 2011-12 for improvement of tracks and rolling stock;
(iii) Rs 15 bn have already been allocated for PR in PSDP, release for which shall be fast tracked; and
(iv) Line of credit from Pakistan State Oil (PSO) to PR has been increased to Rs 2 bn to ensure smooth supply of oil to PR.
The meeting vowed to address all concerns and requirements of 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 of Pakistan. CCOR directed 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.
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