Railways seeking Rs five billion grant: summary to be presented to Prime Minister today

The cash-starved Pakistan Railways has prepared a summary for a grant of five billion rupees which will be presented to Prime Minister Raja Pervez Ashraf in a meeting to be held here today (Wednesday), informed sources revealed to Business Recorder. PM Raja Pervez Ashraf last week directed the Minister for Railways Ghulam Ahmad Bilour to give a presentation about the roadmap for rehabilitation of Railways.
The Railways Minister will brief the PM about the rehabilitation of Railways, locomotive shortage, Public Private Partnership (PPP) and the use of PR bogies subsequent to the resumption of the Nato transit trade in the meeting today.
Railways Minister requested PM in the last meeting to give funds to the PR. According to sources, the PM assured the early release of funds allocated in the annual budget and funds for purchasing new locomotives and repairing the old ones. However, at the same time, the PM directed the Railways Minister to evolve an effective plan for improving the working of PR.
The government has earmarked Rs 31 billions in the budget 2012-13 on account of grants to PR to meet its losses. Besides this, government has earmarked Rs 22.87 billions for the PR under the Public Sector Development Programme (PSDP) in the budget for 2012-13.
The government earmarked Rs 25 billions on account of grant for 2011-12, which was revised upward to Rs 30.5 billion. Sources said that due to locomotive shortage, PR was expecting a further decline in its revenue and to enable it to meet its salaries bill, pensions, bridges and tracks repair, more bail out packages would be required. To meet these expenses initially the Railways Minister is expected to request for a grant of five billion rupees in the meeting.
Pakistan Railways has a fleet of 494 locomotives, out of which 140 locomotives are on track. Out of 140, 30 locomotives are small while 100 locomotives are available for passenger trains. However freight was the major source of income for PR, but only five locomotives were available for this sector, which resulted in huge loss to PR, sources maintained.
Sources further said Railways Minister would request the PM for expediting work on a banks' consortium to release Rs 6.1 billion for rehabilitation of 96 locomotives. The PM will be given a detailed presentation about the operation of trains on PPP basis and Transit Trade for items destined for Afghanistan in the meeting, said officials.