ISLAMABAD: Pakistan is exploring the option of importing locomotives from India to overcome a severe shortage which has badly affected freight and passenger operations of Pakistan Railways.
Informed sources told Dawn on Monday that import of locomotives from India was one of the options the government was currently studying.
Among other options under consideration is an offer by International Finance Corporation (IFC), a commercial arm of the World Bank, to participate in a public-private partnership to meet Pakistan Railways' fleet shortage and import of locomotives from China, Germany and the United States.
The idea of locomotives' import from India has come from a Karachi-based company named Pemcon International Constructors which has reported that 'all technical aspects of acceptability of Indian locomotives have already been agreed between Rites Ltd, the export wing of Indian Railways, and Pakistan Railways a couple of years ago' Pakistan Railways, the sources said, was arranging a meeting on Feb 2 in New Delhi of all relevant Indian stakeholders, including senior officials of the Indian Ministry of External Affairs, Ministry of Indian Railways, chairman of Indian Railways, Rites Ltd and Pakistani High Commission.The two sides are expected to discuss finalisation of a 'dry leasing agreement' for locomotives' import.
The sources said that Minister for Railways Ghulam Ahmad Bilour and Minister for Foreign Affairs Hina Rabbani Khar had already given a go-ahead for the talks to determine how many locomotives could be made available by Rites Ltd of India Officials said the IFC had also expressed its interest to get involved in potential private sector investment in the PR through infrastructure project development facility (IPDF) of the ministry of finance and Railways' newly created PublicPrivate Partnership (PPP) depart-ment.
The PPP process involves developing the railways' sector on a commercial basis through an increased role of the private sector in the operation and management of locomotives. The IFC is offering an advisory role as well as investment in the railways.
The number of operational locomotives of the Pakistan Railways has drastically come down just to 149 from 528 in a matter of a few years.
The PR's overdraft has exceeded Rs40 billion, debt liability touched Rs26 billion and operational losses stood at Rs6 billion as of December 15, 2011, forcing the prime minister to put an indefinite moratorium on repayment of PR's interest pay-ments.
The prime minister had directed the ministry of finance to instruct the State Bank of Pakistan to withhold at source deductions till such time as it is agreed that PR's financial position permitted interest repayments.
Simultaneously, the PR has sought immediate disposal of railways' lands for generating funds to upgrade railways' operations for survival and long-term sustainability.
The secretary of railways has informed the government that rent is not being recovered for the land leased out to several public and private parties and these lands are under unauthorised occupation of influentialencroachers, state institutions and because of the possibility of law and order situation, no action is being taken against them.
Due to financial difficulties and non-availability of full fleet of locomotives, only profitable routes were at present in operation, according to Pakistan Railways.
The PR operated 86 trains in Nov 2011 as compared to 204 in Nov 2010 and 234 in Nov 2009, according to secretary of railways.
Besides, 68 per cent of rail tracks required either replacement or rehabilitation. On Dec 14, revenue from freight was just Rs1.2 million while it was Rs21.5 million on the same day last year and 713 loaded wagons were awaiting dispatch.
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