News
Saturday, August 06, 2011
Govt okays Rs 10 billion bailout package for PR
* CCoR warns railways to ensure timings of trains before Eid as a performance benchmark for early settlement of financial issues
By Sajid Chaudhry
ISLAMABAD: Federal cabinet’s committee on restructuring (CCOR) of public sector enterprises, on Friday, approved Rs 10.1 billion bailout package for the ailing Pakistan Railways (PR), and also decided to ensure release of Rs15 billion development funds for the department on fast track basis.
The CCOR also warned the Railways authorities to ensure arrival and departure timings of trains before Eidul Fitar as a performance benchmark for the early settlement of financial issues.
A meeting of CCOR was held at the Ministry of Finance on Friday. CCOR focused on the revitalization of Pakistan Railways (PR).
The meeting was chaired by Finance Minister Dr Abdul Hafeez Sheikh, and attended by Minister for Railways Haji Ghulam Ahmed Bilour, Minister for Law, Justice and Parliamentary Affairs Maula Bux Chandio, Minister for Privatization Ghaus Bux Khan Mahar, Deputy Chairman Planning Commission, Finance Secretary and others.
CCOR discussed in great depth all issues relating to the revival of Railways.
Keeping in view the fact that how handy PR is in the lives of ordinary people, the government decided to address all financial needs of the organisation on urgent basis.
Following decisions were taken to ensure financial sustainability of the PR.
Around Rs 6.1 billion will be provided for the rehabilitation of locomotives through a banking consortium, while Rs 4.0 billion will be provided through re-prioritization of the Public Sector Development Programme (PSDP) of FY 2011-12 for improving state of tracks and rolling stock.
Around Rs 15 billion have already been allocated for PR under the PSDP, release for
which will be fast tracked; and line of credit from Pakistan State Oil (PSO) to PR has
been increased to Rs 2 billion to ensure smooth supply of oil to the PR.
The meeting vowed to address all concerns and requirements of the PR.
It is expected that due to the addition of locomotives, improvement of tracks and rolling stock, besides enhanced credit line from PSO, PR will again become a viable entity and provide reliable services to the people of Pakistan.
CCOR directed Ministry of Railways that the discontinued services of freight and passenger should be fully restored in the shortest period of time.
CCOR also decided to further strengthen the Board of PR, which shall be notified within one month.
The board will have representation from all four provinces and is also to include professionals and experts of railways and a strong mix from the private sector.
The executive committee of PR is also being strengthened to further improve the management.
The CCOR reiterated that the government of Pakistan was fully committed to reinvigorating the PR to provide reliable, competitive and economical service of high standards to the people of Pakistan.
All members of CCOR expressed satisfaction over the comprehensive plan devised to restructure PR so that it could play its vital role in the economic growth of the country and provide services to the people of Pakistan.
The restructuring of PR shall be fast tracked to ensure implementation in the shortest period of time.
Courtesy www.dailytimes.com.pk