Railways still living up to its bad Reputation: Rs 24 billion fiscal deficit target to be missed

Pakistan Railways will miss the deficit target of Rs 24 billion projected for the current financial year due to a downward trend in scrap market to generate the estimated revenue under this head. The minister made this statement while briefing the Senate Standing Committee on Railways which met with Sardar Fateh Muhammad Hassani in the chair here Thursday. Railways Minister Khawaja Saad Rafique said the Pakistan Railways surpassed the revenue target of Rs 32 billion set for the outgoing financial year and reached Rs 35.5 billion.
However, scrape market is down and the Railways is unlikely to get the estimated revenue under this head, the minister said, adding that it was projected to bring down the Railways deficit to Rs 24 billion from Rs 27 billion in the period under review; however, due to a slump, the target seems to be difficult to reach. The committee was informed that approximately 50,000 metric tons of scrap material including condemned rolling stock is available at present in the Pakistan Railways system. In view of prevailing local scrap market situation, the approximate value of the available scrap is assessed as Rs 1100 million (without taxes) only. Whereas the value, if this scrap material is assessed as Rs 1650 million (without taxes) as per previous last sale rates, which is likely to create a difference of Rs 550 million loss to the Railways. Therefore it is appropriate to wait for improvement in local scrap market situation in the interest of the administration.
Saad further said a final note would be written to all provinces for mutation of Railways land title in its favour and expects response in 10-12 days. In case of failure, the Railways would proceed to the Supreme Court of Pakistan as the issue is being discussed with Attorney General, adding the lawyer has been finalised in this regard.
Minister informed the committee members that currently the Railways cannot provide land to Khyber Pakhtunkhawa government for construction of a mass transit system in Peshawar. A feasibility study of Peshawar-Jalalabad link under regional connectivity framework is underway, and M/s Umar Munshi Associates, Karachi was awarded a contract for conducting the feasibility study and to submit the report up to August 2016.
The "Upgradation of mainline-I and establishment of a dry port near Havelian" is a priority project under the China-Pakistan Economic Corridor (CPEC) Framework and it has already been approved as an "Early Harvest Project" by the Joint Cooperation Committee (JCC) of the two governments. The feasibility report has since been submitted by the consultant and based on the findings of the report; a PC1 has been submitted for approval. At present, the process for undertaking 'preliminary design' of the project has been initiated with the help of the Chinese government.
The five-year project envisages the up-gradation of the entire mainline from Karachi to Peshawar, including Taxila to Havelian, enabling trains to operate at a speed of 160 kmph. The existing limit is 110 kmph. An important aspect of the up-gradation process is the doubling and electrification of track between Peshawar and Lahore; with grade separation and complete isolation of the track through fencing. Higher speed would require sufficient space between the two running lines.
To achieve a speed of 160 kmph, realignment of the existing track would be required at some places, necessitating the provision of additional land along the right of way. Moreover, construction of overhead bridges in place of the level crossings would also require additional land.
The project has been planned in phases, with the doubling of track between Peshawar and Rawalpindi taken as a priority project in phase-I and scheduled for completion in December 2017. To cater for future traffic increase, the Pakistan Railways is also considering the construction of a dedicated freight corridor in the long term. The process for undertaking the preliminary design of the track between Peshawar and Rawalpindi has been started and once this is completed, Pakistan Railways would be in a better position to ascertain the requirement of additional land.
Regional connectivity is an important aspect of the CPEC framework, and therefore the Railways asked the consultant to also undertake the feasibility of up-grading the existing line between Peshawar and Torkham so that the fast train facility can be extended to the people of FATA and beyond.
The committee endorsed the ministry's point while saying till the final design; Railways land cannot be leased out to the provincial government. The committee also observed irregularities in recruitment in Balochistan and directed the Ministry to probe the matter on which he assured the probe into the matter.