The government is considering a proposal to privatise freight business of Pakistan Railways to improve the service by providing modern locomotives and wagons. "Yes, we have a plan but final decision would be taken after the corporatisation of Pakistan Railways," official sources told Business Recorder here on Monday. The government has already announced to make the railways a state corporation up to July 2005 to overcome its losses and enhance profitability.
Its freight section is also facing constant criticism for not producing required results.
Sources in the railways ministry told Business Recorder that the PR was contemplating to hand over its freight section to the private sector, as adequate space would be offered to interested investor in this regard.
"We are facing lots of problems, as many international organisations are also not impressed with our freight service," they said, adding the government would invite investors to come forward and join hands with the government.
It was informed that railways minister Shamim Haider would visit all chambers of commerce across the country after Eidul Azha to seek investment for freight section improvement.
"We are trying to attract private companies to use rail service for transportation of their goods," sources revealed.
They further said Prime Minister Shaukat Aziz has directed the railways to increase its resources and auction all the land which is not useful.
"We will auction all useless land of the railways and money would be spent on its upgradation and to address other economic issues," they added.
They said auction of lands will be completely transparent through open bidding. Private investors would be welcomed to construct housing colonies and commercial plots on railways land.