Leveraging of land for additional revenue: PM directs Railways ministry to consult stakeholders

ISLAMABAD: Prime Minister, Shehbaz Sharif has directed Ministry of Railways to consult concerned public sector stakeholders on draft rules for leveraging of railway land and properties for generation of additional revenue to sustain its operations, well informed sources told Business Recorder.

The Pakistan Railways (PR) provides passenger and freight service as part of its core business. The PR’s financial health is perpetually deteriorating as it is faced with key challenges with a direct impact on its financial performance and service delivery which include skewed expense structure, exponential growth of pensions, and barriers in lands and properties management.

The Pakistan Railways has not been able to leverage land and properties to generate revenue for sustained railway operations mainly due to conflicting decisions of the Supreme Court of Pakistan regarding leasing, licencing and concessioning of railway land. Accordingly, the matter was agitated before the Supreme Court and a comprehensive Business Plan for Railway Land was presented with the objectives of: (i) leveraging railway lands and properties to generate additional revenue for sustained railway operations; (ii) protecting its land and property from encroachment; and (iii) generating employment through enhanced economic activities of local economies.

The Supreme Court considered the matter on January 26, 2023 and directed that a lawful framework be made for the purpose of leasing of Railway land and property and the Railways Organization should approach the federal government for authorisation.

In compliance with the directions of Supreme Court and by invoking the powers of section 47 of the Railways Act of 1890, the Railway Land and Property Rules, 2023 have been framed.

The draft Rules have been recommended by the Railway Board for the approval of the federal cabinet in its meeting held on February 20, 2023. The draft Rules were vetted by Law Division on March 21, 2023.

The improvements made by Law Division have been incorporated in the draft Rules and a Certificate to this effect has also been drafted.

Given the deteriorating financial health of Pakistan Railways and to kick start the leveraging of railway land and properties for generation of additional revenue to sustain railway operations, there is an urgency for approval through circulation to the Cabinet of the draft Railway Land and Property Rules, 2023, in terms of rule 19 of the Rules of Business 1973.

The sources said, when the draft summary along with rules was presented to the Prime Minister, he directed that Ministry of Railways may conduct consultations with Planning, Development and Special Initiatives, IT & Telecom, Power, Housing and Works and Petroleum Division before submission of the case to the Prime Minister for further orders.

The Prime Minister Office (PMO) has directed concerned ministries/divisions to submit their views within a week of receipt of the draft rules from Railways Division.