Railways ministry faces a Rs37-40 billion deficit: Sheikh Rashid Ahmed
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Railways Minister Sheikh Rashid Ahmed on Thursday during a talk with the media in Rawalpindi said that the railways ministry faces a debt of Rs37-40 billion left behind by the "previous corrupt, dishonest government" which had been "tooting its own horns claiming that the industry is doing well".
He said that the yearly expenditure was found to be Rs9bn and he has issued instructions to the Divisional Superintendent (DS) Rawalpindi to cut expenditures.
Sheikh Rashid said that the ministry has roughly 20-25 acres of land which private companies "are welcome to invest in for 20 years and build plazas, stations and food streets".
"We do not want any delay [...] we are willing to rent out the railway tracks even," he said, highlighting the gravity of the situation the ministry is facing.
He said that many overseas Pakistanis [interested in investing] had asked that they be "given surety" by Imran Khan himself, to which he had responded: "Imran Khan is the one who has appointed me and given me charge of this ministry."
"Many offers have been made for bringing bullet trains to the country by people who said they will invest their own funds but I have told them this is a very expensive project. We must fix 'our trains' first," he added.
He said his first agenda would be to address the matter of the double track from Lahore to Peshawar, whereby he wants to do away with the 6-kilometre zig-zag track and also have the train pass through areas where there are no paved roads. He said he has contacted National Logistics Cell (NLC) and Frontier Works Organisation (FWO) in this regard.
We will make efforts for a straight track from Kalowal to Jhelum eliminating unnecessary curves of 56 kilometres with a view to reducing the travelling time between Rawalpindi and Lahore. We want to start new train for Bisal, Jand and Mianwali to facilitate the citizens, Rashid added.
According to the minister, the first train to run will have a 10 per cent discount offered to customers for a period of one month.
Moreover, he warned his ministry officials that he would not tolerate corruption and any political interference in the railways. "Imran Khan's cabinet has zero tolerance policy towards corruption. We will not tolerate one per cent corruption in the railways departments,” he asserted.
“I will double the number of freight trains,” the minister said, emphasising that no railway system could survive without a strong freight train system. "I want to start trains from Karachi to Sukkur, Rawalpindi to Lahore and Rawalpindi to Mianwali."
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Comments (98) Closed
Aug 23, 2018 03:28pm
Investigate thoroughly and establish all expenditures and reasons for deficits, and take stringent action against Saad Rafiq and his cronies - this is important and only way to expose corrupt mafia!
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Aug 23, 2018 03:43pm
He is unnecessarily trying to divert and deflect attention from his bad and objectionable behavior two days ago when he physically abused an old lady and damaged the cell phone of the reporter who recorded the sad incident on his cell phone camera. What a shame?
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Aug 23, 2018 03:45pm
Make it right sheikh sahib have full confidence in you PTI zindabad.
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Aug 23, 2018 03:49pm
Bravo so all this is to sell the railway land worth of millions in the guise of emergency. Great start NEW RAILWAY MINSTER. He did the same in the PAST
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Aug 23, 2018 03:50pm
Pakistan Railways, like Pakistan Steel Mills and Pakistan International Airlines is not a good investment. This is not a place anyone wants to put his money. How would one even get the principal back, let alone interest, when the government wants to spend billions of rupees on upgrading the system without allowing Pakistan Railways to raise fares? That is the Catch 22 of Socialism in the Developing World from South Asia to Latin America. The socialists want the capitalists to invest but not to make a profit. How is that possible?
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Aug 23, 2018 04:10pm
As a regular user of railway I am surprised in fact shocked to read that the railway is going in a loss. Train tickets are not available months in advance. Nothing but corruption and negligence is the root cause. I have a few recommendations for the current honourable Minster. 1. The tracks need to be maintained and upgraded to allow for smooth and fast journey. 2. A special discipline (Railway engineering) should be introduced in our universities.Graduates should be hired to maintain and build high speed tracks. 3. We should also revamp the electric line and introduce electric engines. 4. Hiring of all railway employees need to be on merit basis.5. Modernize the booking and ticketing system. 6. Planting of fruit trees along the vacant plots of railway lines be given to generate more income. 7. Award points to frequent travellers. 8. Sell shares of railway to public 9. Non performing employees are to be demoted. 10. Introduce Character building and ethical behavior courses for staff.
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Aug 23, 2018 04:14pm
"We are willing to even rent out the railway tracks". Yes indeed. - Desperate Times deserve Desperate Measures. If the PTI wanted to establish a communist dictatorship the former railways minister and his cronies could be executed by the state for sabotage. That is how Stalin's Soviet Union would have handled the problem. Socialism is Communism without any muscles.
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Aug 23, 2018 04:19pm
Part of the reason of public tendering is to distribute money to the business so that it generates economic activity in the masses. NLC and FWO are subsidized organizations and hamper economic activity as these are part of military industrial complex and these are subjected to little accountability. The correct solution to the delay in tendering process is simplify public tendering processes through legislation and reform.
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Aug 23, 2018 04:19pm
Please learn lesson from the United Kingdom. Rail privitisation never helps. Its a recipe of total devastation of the service and also a heavy burden on people pockets and the government. It's far better to manage the affairs under total public control. Eliminate corruption at senior level.
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Aug 23, 2018 04:19pm
Blame game begins.
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Aug 23, 2018 04:25pm
This man means business.
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Aug 23, 2018 04:26pm
Stop crying even having a mandate...
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Aug 23, 2018 04:30pm
To cut cost his first task should be all employees show up and work 8 hours a day or else will get fired. Setup website for customers to complain which he should himself read and take action. Railway business should be customers first and union last.
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Aug 23, 2018 04:45pm
Renting out railway tracks..? Well that's new !!
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Aug 23, 2018 04:49pm
Get to work Shaikhji.
Q.How do trains hear what you’re saying?
A: Through the engineers!
Get it? Engine Ears. Hire good engineers, people don't want to travel, they want to arrive at their destinations.
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Aug 23, 2018 04:55pm
37-40 Billion RS deficit, how are you going overcome? More taxation! not a popular approach, people want to enjoy a free ride without paying for it, unless the public is willing to swallow the bitter pill, we will stay in the quagmire.
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Aug 23, 2018 05:01pm
He was Railways Minister before and a
miraculous recovery was performed then ,Alas, the previous ministry spoilt it.The trains were running like clockwork before that evident for all to see.
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Aug 23, 2018 05:03pm
What to see results. Don't talk, show results
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Aug 23, 2018 05:07pm
He was railway minister before and was very lucrative for him looks like is the same even in naya Pakistan.
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Aug 23, 2018 05:08pm
2 days ago he said in 3-4 months he will make railway profitable, now I know he will make it by selling to others, nice dreaming
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Aug 23, 2018 05:20pm
A completely disoriented and absolutely incoherent policy statement by the Railways Minister concerning a public sector white elephant eating up vital financial resources of the country. People are fed up listening to age old game of blaming his predecessors which includes himself as heading this ministry during Musharraf era. Nobody is going to buy this layman’s approach anymore as they expect a turn around based upon solid improvement plan Involving in depth analysis of all factors leading to this dire state, be it mismanagement, over staffing, old & depreciated locomotive engines & bogeys, & above all non maintained tracks causing delays and accidents forcing would be customers to use other means of transport. It is a known fact that railway lands 200’ along the existing tracks have been encroached upon & minister seems to have no clue to use it as a resource for uplifting of this sick industry. In fact railway operations should be shared with private sector.for making it profitable
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Aug 23, 2018 05:22pm
Don't tell the half truth. Also tell us what was the debt in 2008 and 2013. How much assets PR had in 2008, 2013 and have now in 2018. How many trains were running in 2008, 2013 and are running now. How many thousands of acres land were in illegal possession of land grabbers in, again, 2008, 2013 and 2018. Don't fool the nation please.
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Aug 23, 2018 05:35pm
Sheik sahib. Do not let people to build garbage on that land. Plan it very well and then ask contractors to build some thing on that land. I travelled US and West - the railways stations should have right kind infrastructure for tourist and Pakistani citizen to enjoy. Do not hurry and take your time.
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Aug 23, 2018 05:57pm
I hope that the land for plazas is given via transparent bidding and to the competent contractors. It should not be used as an occasion to benefit PTI cronies.
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Aug 23, 2018 06:13pm
Accountability of Saad Rafik is in order... but he is scot-free... wonder why... sir we want action in new Pakistan
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Aug 23, 2018 06:13pm
The mess left by previous government and the lies they weaved is all coming out now. Thats how the nation benefits from honest leaders.
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Aug 23, 2018 06:19pm
Like all other state run induatries PML (N) has destroyed these industries for the benefit of their own business.
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Aug 23, 2018 06:33pm
but I have told them this is a very expensive project. We must fix 'our trains' first," he added."
He on the very first day made a big claim that he will put railways on track with in 3 months.
In three months of time he will not even get hang of problem faced by railways.
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Aug 23, 2018 06:46pm
Invite private companies to directly invest in the system. Add more tracks with that and control bus mafia's hegemony.
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Aug 23, 2018 06:47pm
What were his achievements the previous time he was minister of Railways?
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Aug 23, 2018 06:51pm
Investigate Saad Rafique the last railway minister.
PML-N has destroyed our institutions.
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Aug 23, 2018 07:01pm
Heard his address. The bottom point of his address is, he wants businessmen, organisations etc. to pull this almost bankrupt railway. Question is who will take that risk? Don't know how far will he able to do this.
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Aug 23, 2018 07:29pm
Please sort out Allama Iqbal airport staff for overseas Pakistanis... The hassling for money and open corruption must stop.
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Aug 23, 2018 07:46pm
$400million + in deficit and Saad Raafique fooled everyone into believing it was doing so well. Same will be found in almost every other ministry, lots of corruption and mismanagement. BIG challenge for PTI, they need to be innovative and use the best talent to improve ministries. Good Luck.
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Aug 23, 2018 07:59pm
There are several ways of making railways free of deficit. I have sent an email to Mr. Imran Khan and Sheikh Rasheed should get feed back from him.
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Aug 23, 2018 08:09pm
We need dual railway tracks from Khyber to Karachi, first and foremost.
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Aug 23, 2018 08:22pm
Previous Railway Minister Saad Rafiq must be thrown behind bars and our money must be recovered from this crook.
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Aug 23, 2018 08:30pm
Fixing the existing Railway system is the worst idea of all. Establish a commission which should study the Railway systems of the world and then give recommendations on how to start a pilot project between two cities. Once that is completed then keep on adding other cities.
Leasing railway land for plazas is also not a good idea as in the near future you will have to buy more land to resume services. Sheikh Rashid may not be corrupt but he definitely lacks vision.
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Aug 23, 2018 08:39pm
Also tell your performance during Musharraf era, and also what about the inauguration of Chakwal railway station
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Aug 23, 2018 08:45pm
Here come the excuses, now it is time to deliver the results. Forget the past give us the future.
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Aug 23, 2018 09:31pm
NLC and FWO? The IRR for the “investment” seems pretty high.
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Aug 23, 2018 09:38pm
Dear minister people do also live in shakargar so they also need to travel so why are forgetting them.
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Aug 23, 2018 09:44pm
In our country whoever takes over, always cries about
the miserable condition of ministry but still want to become minister...
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Aug 23, 2018 09:51pm
Shaikh sb. Instead of looking at keasingbof real estate, the favourite game in Pakistan, why not look at offering the railway system both the tracks and carragies on BOT basis to interested parties. Create a short term and long term plan to get this off the ground and running. An efficient and modern railway system is needed badly for both passenger and freight movement in addition to a strategic arm for military goods and soldiers. With the possibilities it offers am sure local and foreigners would look at it keenly
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Aug 23, 2018 09:59pm
Good that he showed his preference of train over billet trains
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Aug 23, 2018 10:00pm
Sheikh Rashid Sb you also contributed to this deficient during Musharaf's regime! Saad Rafique did a good job!
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Aug 23, 2018 10:02pm
I like Sheikh Sahib because he is bold and honest. But what he lacks is the exposure of seeing the best railways systems of the world. I must say the railways minister be give a ticket to travel Europe expecially Switzerland and just have a glimps of their railway structure or seeing Japanese railway system. Trust me minister sahib. It is not about money - it is about the vision - the vision how the railway system should be. Will recommend not wasting any money to build a poor and non appealing railway stations. Sometime I feel like crying when I see so many years got wasted and so much money wasted as well. Start with improving the following railway stations
Lahore Railway Station
Make the station the best in Asia. Spend sometime to find the definition of best. One day Pakistanis will be proud of you and will have pride of being Pakistani.
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Aug 23, 2018 10:52pm
Nothing new.! Pak railway is always in lose.It is the right time to privatize .
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Aug 23, 2018 10:57pm
How is he qualified to run the railways?
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Aug 23, 2018 11:04pm
Same old faces. Not much change. All pipe dreams!
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Aug 23, 2018 11:11pm
He sounds corrupt. What is his plan to revive the railways? Just talk is not enough.
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Aug 23, 2018 11:13pm
U were railways minister previously too. Didnt see any revolutionary change in ur 5 years
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Aug 23, 2018 11:28pm
Mr SR please tell us in a few bullet points what was your achievements in previous 5 ministerial posts.
Let's make it easy for you name one. There is NONE.
It is so easy in Pak land to take the shortcut of politics and rule over educated people in services who have taken up all challenges and exams to reach their position.
But have to call people like you with NO academic background Sir. Sad
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Aug 23, 2018 11:33pm
Pakistan Railway, like Pakistan Airlines, are two of the biggest burdens on the government, both need major management and personal overhaul.
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Aug 23, 2018 11:54pm
Railway bridgeas built by British 125 yers back are in precarious conditions. Firt task for Shaikh Saib is to replace them.
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Aug 24, 2018 12:07am
Minister sab, you forgot to mention about Quetta??? It is a capital city for a province in Pakistan named Balochistan
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Aug 24, 2018 12:21am
Considering how small the railway network in Pakistan is and how deep the mess in the Ministry, its a perfect case for full privatisation , starting with major route lines. You could actually be sitting on a gold mine for the govt in Islamabad
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Aug 24, 2018 12:56am
@Sajjad good point. Do you think he knows the answer? In Pakistan the best politics is to Blame the out going government as they can no longer defend
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Aug 24, 2018 01:35am
Railway officers live in palatial houses, 35 Kanal houses in Mayo Gardens(most prime real estate in lahore) is common even for 18 grade railway officers. They need to bring austerity in the department soon otherwise they will suffer more losses.
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Aug 24, 2018 01:52am
This man should retire.
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Aug 24, 2018 02:58am
Every train is over packed. You have a lot of income..
For decades railway minister down to a small employee has looted railway.
CJP to order audit.
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Aug 24, 2018 03:01am
@HA he is honest and bold but he has no exposure how the cities be built and how the railway system should look like. Honesty and boldness is enough to grow country.
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Aug 24, 2018 03:25am
Chinese engines are rusting and failed.
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Aug 24, 2018 03:26am
@ Dr. Salaria, Aamir Ahmad - did that video ever appear on the social media?
if not how do we know the reporter isn't telling lies on behest of PTI's enemies?
innocent until proven guilty !
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Aug 24, 2018 03:51am
Wonder who are those investors who are willing to bring bullet trains with their own money to Pakistan?The Chinese have clearly said "No" to bullet trains in Pakistan.
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Aug 24, 2018 05:14am
Pakistan's new railway minister will only good in "eating" the railway, but not running railways :)
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Aug 24, 2018 06:45am
IMF will not give the money until PIA, Railways and Steel Mills are privatized.
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Aug 24, 2018 07:56am
Start train from Islamabad to peshawar too as most people working in isld are from KP. Will be profitable surely
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Aug 24, 2018 08:37am
CJP should take notice of Railway engines double cost corruption. Case.
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Aug 24, 2018 09:51am
FWO & NLC without any competitive bidding?
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Aug 24, 2018 10:18am
Sheikh sab, I appreciate the legacy of improving railway from your previous tenure ! Transparency of available sources and accounbilty for using resources what we are expecting as clean government ! Ghost emolyees or employees who are not working or under performing must be removed or should taken harsh as 20 crore people, tax payers money is at risk ! And it is my request to restart the Karachi Circular Railway as entity and put required effort for investment for infrastructure and trains !
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Aug 24, 2018 10:19am
@Anti-Corruption_Pakistani yes as people consider him clean that should be open !
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Aug 24, 2018 10:21am
@Dr. Salaria, Aamir Ahmad if this misbehaviour continuous people power are there to remind them they are servers and people elected them & believe them as better people for better delivery !
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Aug 24, 2018 10:23am
Cut out corruption , replace procurement staff and other crooks and you will save Rs 30 billion straight away. Stop mafias collecting money to allow trains to operate.
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Aug 24, 2018 10:24am
@Nomi Goraya He left Railways in break even last time to come back and find a deficit of Rs 40 billion.
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Aug 24, 2018 10:44am
Sheikh had given same promises when he was blue eyed of Nawaz Sharif and Musharraf
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Aug 24, 2018 11:15am
What is going to be done with railway track? It seems railway minister is getting very restless. If he thinks within months he will bring the railway back on track he is living in fools' paradise. It will take at least 5 years to set everything in order. He has to keep patience if he really wants to improve railway and its financial health.
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Aug 24, 2018 11:18am
@Dr. Salaria, Aamir Ahmad, bogus pm and his inefficient ministers will take pakistan back into 16th century. they will not do any development projects, actually they have been imposed on pakistan just to block rapid progress of pakistan
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Aug 24, 2018 11:36am
A ministry that has an expenditure of 9 billion cannot have a deficit of 35 billion. it's a simple math. I agree with Dr. Salaria, Aamir Ahmad that he is diverting attention from a recent incident in which he humiliated a poor women and a journalist.
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Aug 24, 2018 11:50am
Sir, First Please stop theft and punish criminals within.
i had once learnt that even the diesel is robbed, among many others
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Aug 24, 2018 11:54am
If there is unrepaiarable corruption and no government can handle it then privatisation is the only Option left.
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Aug 24, 2018 12:18pm
If you and your government is serious than talk to Japan for bullet trains and restructuring of railway.
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Aug 24, 2018 12:24pm
Seems there are no problems with railways in Sindh, Baluchistan and KPK. Great indeed.
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Aug 24, 2018 01:03pm
Actually, no one is held accountable. Like election commission or like NAB, there should be a special cell or department to control corruption of the people involved in Pakistan railways. Those who have gone,they must also be held responsible and there must be written policies to be followed.
The best is to privatise it fully under certain fixed supervision of the government. That means, the private sector must be under some check.
However, in the advanced countries the whole progress came when privatisation was held.
Corruption is held from within and in a very skillful way. If honesty ptevails, this railways can generate more than fifty percent of the revenue. but dishonesty is our rule.
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Aug 24, 2018 01:59pm
Everyone knows the problems! Come up with the solutions!
To come up with innovative solutions, one needs professional competent people to run Railways not politicians!
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Aug 24, 2018 02:02pm
@Alba one of the most logic comment i have read so far. Oh yes telecom, railway, transport, hotel , airline, industries these area should be left for private sector
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Aug 24, 2018 04:23pm
Sheikh Rasheed has not given the complete picture of last five years. Here are few statistics that needs attention:
1- Rev: FY 2016-17 Rs. 40 billion. In FY 2012-13 Rs. 18 billion
The revenue is expected to touch Rs. 50 billion in 2017-18 (Keeping in view the business in hand)
2 - No.of Passengers: Current: 54 Million - In 2012/13: 42 million
3 - Freight: Current 5.63 Mln Tons - In 2012 it was 0.40 Mln Tons (Currently daily 13 freight trains previously it was 1 train)
4 - Rehabilitation of track: 730km done in last five years
5 - Punctuality: Current 77% - In 2012 it was 42%
6 - Booking possible through smart phone app now. (And it works, I booked a ticket myself)
7 - 55 GE Locomotives added to fleet and trains were refurbished.
All those who have traveled by train would see a visible difference between services now from then (2012 period). Things have improved drastically. The deficit has come down by Rs.10 billion in last four years
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Aug 24, 2018 05:40pm
Just give him the money, cash all around, and see the transformation in the railways in no time.
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Aug 24, 2018 07:29pm
This is what happens; when you have idiots in government playing with money.
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Aug 24, 2018 07:56pm
Give the poor man the money he is asking for. After all he has been out of power for the last ten years.
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Aug 24, 2018 09:48pm
@Nomi Goraya You ever have anything positive to say about Pakistan, its always negative, its always you knowing answer to every question, situation. Maybe you should run for a political office, you seem to know it all and everyone.
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Aug 24, 2018 10:11pm
@bimalwilliam this govt will hardly lsst for 2 years.
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Aug 24, 2018 10:56pm
@Mashman IK please note.
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Aug 25, 2018 03:01am
Sorry nothing to eat in this second term under IK.Musharuf term was very fruitful.
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Aug 25, 2018 11:02am
PR needs honest professional people to run the affairs!
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Aug 25, 2018 12:42pm
37-40 Billions deficit should be back charged to all the Ministers who failed to performed or merit basis. This could have been more beneficial if we as a "citizen " appreciate to all the good works and criticize on people like PLMN had been nominating people who are totally incompetent . Best wishes for Sheikh Rasheed and hope all is going fine as planned and agenda set by Imran Khan .
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Aug 26, 2018 01:43am
@Adeel. Still, your statistics can’t justify the “loss of 37-40 billion” left behind by the rosy picture you painted by a currupt regime making the entire country bankrupt “twice” yet can’t justify accumulation of his personal wealth either!
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Aug 26, 2018 02:00am
@Dr. Salaria, Aamir Ahmad. Here, rationality ought to prevail not mere possible assumption of co-relation. There are two separate issues, one personal but other is a solid negative number which has been accounted for.
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