ISLAMABAD: Finance Ministry is said to have opposed transferring pension liability of Pakistan Railways (PR) to the Government of Pakistan (GoP), saying that it cannot bear additional financial burden as existing pension bill of federal government is already high, well informed sources told Business Recorder.

This opposition came to the fore at a recent meeting of the federal cabinet when Pakistan Railways restructuring plan was presented for reconsideration. Pakistan Railways annual pension bill was around Rs 34 billion.

The Railway Division stated that a summary for approval of restructuring and revival of Pakistan Railways was submitted to the Cabinet on Sep 22. A presentation to highlight the salient features of the plan and measures being taken by the Ministry of Railways was also made to the Cabinet.

The Cabinet discussed the restructuring plan and directed the Railways Division to complete the consultations with Establishment, Finance and Law & Justice Divisions in a week and resubmit the summary to the Cabinet clearly delineating the directions of the court and response by the Division.

The sources said, Pakistan Railways' restructuring and revival plan was prepared in line with the directions of the Supreme Court of Pakistan which was as follows "there seems to be nothing in sight the operation of Railways in Pakistan could be improved, as not only is the structure of the Railways altogether bad and not workable but also its employees are apparently not fit to operate the railways, there needs to be serious thinking on the part of Government of Pakistan regarding the operation of Pakistan Railways and overhauling the secretariat from top to bottom to ensure that the railways operate in Pakistan safely. We expect that such measures will be taken by the Government of Pakistan immediately to ensure that the railways do not play with the lives of the people and its priorities are not lost. A report, in this regard, may be made available to the court by the Government of Pakistan through the Planning Commission within one month."

According to sources, in light of the Cabinet decision, consultation with Establishment, Finance and Law & Justice Division has been completed. A letter was also received from the law minister and the points highlighted by him had also been addressed.

During discussion, a member observed that the proposed executive board of Pakistan Railways comprises of its own officials with little representation from private sector. It was enquired as to why not adopt a corporate structure. It was explained that composition of the board was in consonance with the existing law and the proposed board had been expanded to include three private sector members. However, after amendments in the Law a corporate structure would be adopted.

It was pointed out that the Finance Division did not agree to the proposal regarding transfer of Pakistan Railways' pension liability to the Government of Pakistan. Adviser to the Prime Minister on Finance & Revenue confirmed the observation. It was suggested that definite timelines for implementation of each initiative under the restructuring and revival plan should be given and CCIR should regularly monitor these to obviate delays.

The issue of pension transfer to GoP would be further discussed by the sponsoring division with the Finance Division and a mutually acceptable solution would be presented to the Cabinet for approval; and definite timelines for implementation of each initiative, under the restructuring and revival plan, shall be included identifying the agency(ies) responsible for each initiative.

The Cabinet further directed that the Cabinet Committee on Institutional Reforms shall regularly monitor these to obviate any delays.

Copyright Business Recorder, 2020