reseach paper on the topic the causes behind the failure of pakistan railways..docx

7/29/2019 Reseach Paper on the topic the causes behind the failure of Pakistan Railways..docx

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QUAID-I-AZAM UNIVERSIITY ISLAMABAD

QUAID-I-AZAM SCHOOL OF MANAGEMENT SCIENCES

RESEARCH PAPER

TOPIC: THE CAUSES BEHIND THE FAILURE OF PAKISTAN RAILWAYS

SUBMITTED BY: HAKIM ALI

SUBMITTED TO: SHAZIA PARVEEN

STUDENT ROLL #: 01171211028

COURSE: RESEARCH METHODS AND REPORT WRITING

CLASS: MPA-II

Date Submitted: 14/12/2012


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TABLE OF CONTENTS

S.NO Page #

Title page.. 05

Acknowledgment.. 06

Dedication. 07

Abstract.. 08-09

1. CHAPTER#1. .9-10

1.1 Introduction. 10

1.2 Research Objectives. 10

1.3 Aim. 10

1.4 Mission Statement10

2. CHAPTER#2.11

2.1 Literature Review..12

2.2 Manufacturing Unit.12-13

2.3 Human resource. 13

2.4 Speed13

2.5 Important railway lines13

2.6 Important railway stations........................................13 -14

2.7 Routes Followed By Trains..15

3. CHAPTER#3 .15


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3.1 Research Methodology15

3.2 Time Frame.15

4. CHAPTER #4..16

4.1 The main causes behind the failure of Pakistan railways.16-19

4.2 Other issues behind the failure of Pakistan railways..19

4.3 Absence of Clear Direction19

4.4 Reasons of downfall of Pakistan railways.20

4.5 The Chronic Problems That Have Perverted the Organizations Performance20-23

5. Chapter #5 ..24

5.1 Action planning for the Increasing the efficiency and effectiveness of Pakistan Railways..24

5.2 Changing Structural Design.24

5.3 Downsizing.24

5.4 Reengineering..25

5.5 Alliance Interventions....25

5.6 Network Interventions..26

5.7 Comparisons . 26-27


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Recommendations &

Conclusions..27

Recommendations...27

Conclusion27-28

Bibliography & Referencing...28-30


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TITLE

THE CAUSES BEHIND THE FAILURE OF

PAKISTAN RAILWAYS


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ACKNOWLEDGEMENT

All the praises and thanks for almighty ALLAH who is entire source of knowledge and wisdom

to mankind and whose uniqueness gave me enough courage ,knowledge and ability to

accomplish this research report.

Thanks are also to last Prophet Hazrat Mohammad peace is upon him through whom Almighty

ALLAH communicated knowledge to mankind and who is forever torch of guidance and

knowledge for whole community.

I am also thankful to honorable teacher Madam SHAZIA IJAZ who provided me a chance to

enhance my knowledge and guided me at every step during Master Degree program. I really

acknowledge to her great efforts.


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DEDICATION

I heartily dedicate all my efforts to my beloved Mother, brothers, sisters and my whole family

owing to their kind prayers I could do all things for which others dreamt of ..

I pay my special thanks to respectable teacher SHAZIA IJAZ who makes me able to do all

efforts with courage. May almighty ALLAH bless all those friends who guided me in every

difficult step?


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ABSTRACT

Pakistan Railways is the state owned railway company of Pakistan. It is a large organization

under the administration of Ministry of Railways. Pakistan Railways provides an important mode

of transportation in the farthest corners of the country and brings them closer for business,

sightseeing, pilgrimage and education. Current bureaucratic officer and secretary as well is

Muhammad Arif Azim who is also tenuring as the Chairman of Pakistan Railways.

Over the past many years, Pakistan Railways has been facing problems and is now on the verge

of bankruptcy and this department has been failed. With budget deficit of billions, eroding

market share and corruption scandals, political and economic issues the future of Pakistan

Railwaysonce the life line of the country is grim. At the time of independence, both India

and Pakistan, inherited the Railway Network laid down by British. While Indian Railways has

emerged as a highly profitable organization, Pakistan Railways is struggling to keep itself

running.

This report summarizes that problems, issues and causes of Pakistan railways such as political

interference, poor maintenance of track locomotives couches, mismanagement and there are

many causes behind its failure. There are some suggestions and actions of planning that have

been discussed in this report those can be helpful for fostering the efficiency and performance of

Pakistan railways and can revamp its image and good will. Research methodology is based on

secondary approach and the data has been collected from various websites, blogs, and articles of

news paper and from internet resources. In perspective of data and analysis, this research is

based on theory based analysis and it also has been included the projected analysis of budget of

Pakistan railways.


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The report provides introduction of Pakistan Railways, its history, organizational structure which

is then followed by some suggestions that can be applied to this case.

Diagnosis of the organization has been done with the help of data collected and findings and

from research.


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TITLE: THE CAUSES BEHIND THE FAILURE OF PAKISTAN RAILWAYS

1. CHAPTER (PAKISTAN RAILWAY, LIFE LINE OF THE COUNTRY)

1.1 INTRODUCTION

Pakistan Railway, life line of the country, is a national state run transport service. It is under the

administration of federal government under the Ministry of Railways and its head quarter is in

Lahore. It is an important source of transportation throughout Pakistan. Pakistan Railways

provides an important mode of transportation throughout Pakistan. It is commonly referred to as

the "life line of the country", by aiding in large scale movement of people and freight throughout

Pakistan. Recently a Pakistan railway is in crisis. This persistent failure owes to absence of a

clear direction for the organization, a pessimistic organizational issues and ethos resulting from

years of decline and political interference in decision making to the detriment of commercial

feasibility. Organizational roles and responsibilities remain diffused which create issues

for accountability. A number of decisions have been centralized in the Board or the Executive

Committee of the Board that absolves officers at the operational level of any accountability.

Financially, Pakistan Railways have alarming figures and over the years it has become

chronically dependent on overdraft from the State Bank of Pakistan. It carries millions of

passengers is now facing the number of issues now a days.

1.2 Research Objectives

To identify the major issues and causes behind failure of Pakistan railways.

To examine the factors and elements that who are responsible for these inefficiencies.

To establish the parameters for overcoming these inefficiencies and losses.


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To draw conclusion for remedy of these problems and setting the strategies to increasethe efficiency and escalating the profitability of Pakistan railways.

1.3 Aim

Owing to some crisis recently Pakistan railways has been confronting many problems and has

been completely gone into huge losses and budget deficit so that is why I chose this topic to

conduct the research that who is behind its failure, to identify the real issues and problems of

Pakistan railways and how Pakistan railways can increase its efficiency and effectiveness and

how its problems and issues can be eliminated. My research of this project is based on above

mentioned research objectives that will help me to draw some parameters and resolution of these

causes and issues of failure of Pakistan railways.

1.4 Mission Statement

To provide a competitive, safe, reliable, market oriented efficient and effective Pakistan railways

department and reducing losses of Pakistan railways


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CHAPTER #2

2.1 LITERATURE REVIEW

Pakistan Railways is a Federal Government Department under Ministry of Railways.

The Secretary for Ministry of Railways is the ex-office Chairman of the Railway Board.

Pakistan Railways comprises of three functional units.

1. The Operations Unit2. the Manufacturing & Services unit3. Development Unit

Each headed by a General Manager who reports to the Secretary/Chairman Railways for the

performance of his Unit.

The Operations unit is located in the historic North Western Railway Headquarters building, an

imposing landmark of colonial-era architecture of Lahore. It oversees train operations and all

related functions. Three Additional General Managers, each heading a Business Unit -

Infrastructure, Traffic and Mechanical in addition to various specialized head of departments

assist the General Manager Operations

The Manufacturing and Service (M&S) unit oversees the management of the Concrete Sleeper

Factories, Locomotive and Carriage Factories. The Development Unit manages all; Divisions

i.e., Peshawar, Rawalpindi, Lahore, Multan, Sukkur, Department besides, monitoring projects in

execution Railway owned Schools Hospitals and Railway Academy, Walton, Information &

Technology Pakistan Railways comprises of seven territorial operating Karachi & Quetta,

besides, Workshops Division at Moghalpura and an administrative Division at Headquarter The

territorial and Workshops Divisions are each headed by a Divisional Superintendent directly

under the auspices of General Manager Operations .The Divisional Superintendents are assisted


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by the Divisional and Assistant Officers of their respective departments i.e. Engineering

Department-Civil, Mechanical, Electrical, Signal and Telecommunications, Medical,

Transportation & Commercial, Accounts and Railway Police.

2.2 Manufacturing Unit

The department of manufacturing is headed by the General Manager Manufacturing & Services,

this unit is composed of following sections:

1. Carriage Factory, Islamabad, (CFI)

2. Concrete Sleeper Factories, (CSF)

3. Locomotive Factory Risalpur

4. Rehabilitation Project, MGPR

5. Railway Constructions Pakistan Limited (RAILCOP)

6. Pakistan Railway Advisory & Consultancy Services (PRACS).

Ministry of Railway is responsible for overall control of Pakistan Railways as well as to guide

the overall policy. A Pakistan railway has four (4) Directorates namely Administrative

Directorate, Technical Directorate, Planning Directorate, and Finance Directorate.

The following officers also report directly to the Secretary Railways

A. General Manager (Operations)

B. General Manager/Manufacture and Services

C. Federal Government Inspector of Railways

Railway Board is the highest body for technical matters of the Railways and consist of Chairman

and five Members out of which three are from the private sector. Secretary to the Government of


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Pakistan, Ministry of Railways is the ex-officio Chairman of Railway Board and the General

Manager, Railways is the Chief Executive Officer. Organization Structure of Pakistan Railways

is of functional type, headed by General Manager and assisted by four Additional General

Managers. The general supervision and management of affairs of Pakistan Railways is vested in

the Railway Board, which has been reconstituted. The new Railway Board consists of Chairman

and five Members out of which three are from the private sector.

2.3 Human resource

Pakistan Railways has about 90,000 employees consisting of staff and officers as of 2008). 71%

of the total employees are working in Civil, Mechanical and Transportation departments. All the

hierarchy positions are held by graduate Engineers.

2.4 Speed

The maximum Speed of Pakistan Railways is 120 km/h. Some sections ofKarachi-Lahore main

railway line allow 120 km/h speed. Work is in progress to improve railway track on Karachi-

Khanpursection to increase speed to 140 km/h.

2.5 Important railway lines

Karachi-Peshawar Main Line via Rohri, Khanewal, Lahore & Rawalpindi,Rohri-

Quetta,Khanewal-Faisalabad,Lahore-Faisalabad,Lahore-Sialkot via Narowal

2.6 Important railway stations

Karachi-Peshawar main line:Karachi City,Karachi Cantt,Landhi Junction,Kotri

Junction,Hyderabad Junction,Tando Adam Junction,Nawabshah Junction,Mehrabpur
http://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Khanpurhttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Peshawarhttp://en.wikipedia.org/wiki/Rohrihttp://en.wikipedia.org/wiki/Rohrihttp://en.wikipedia.org/wiki/Quettahttp://en.wikipedia.org/wiki/Khanewalhttp://en.wikipedia.org/wiki/Faisalabadhttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Faisalabadhttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Sialkothttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Peshawarhttp://en.wikipedia.org/wiki/Karachi_Cityhttp://en.wikipedia.org/wiki/Karachi_Cityhttp://en.wikipedia.org/wiki/Karachi_Cantonment_Railway_Stationhttp://en.wikipedia.org/wiki/Landhihttp://en.wikipedia.org/wiki/Kotrihttp://en.wikipedia.org/wiki/Hyderabad,_Sindhhttp://en.wikipedia.org/wiki/Tando_Adamhttp://en.wikipedia.org/wiki/Nawabshahhttp://en.wikipedia.org/wiki/Mehrabpurhttp://en.wikipedia.org/wiki/Mehrabpurhttp://en.wikipedia.org/wiki/Nawabshahhttp://en.wikipedia.org/wiki/Tando_Adamhttp://en.wikipedia.org/wiki/Hyderabad,_Sindhhttp://en.wikipedia.org/wiki/Kotrihttp://en.wikipedia.org/wiki/Landhihttp://en.wikipedia.org/wiki/Karachi_Cantonment_Railway_Stationhttp://en.wikipedia.org/wiki/Karachi_Cityhttp://en.wikipedia.org/wiki/Peshawarhttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Sialkothttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Faisalabadhttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Faisalabadhttp://en.wikipedia.org/wiki/Khanewalhttp://en.wikipedia.org/wiki/Quettahttp://en.wikipedia.org/wiki/Rohrihttp://en.wikipedia.org/wiki/Peshawarhttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Khanpurhttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Karachi


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Junction,Khairpur,Rohri Junction, Ghotki,Sadiqabad, Rahim Yar Khan, Bahawalpur,Multan

Cantt,Khanewal Junction,Mian Channu, , Chichawatni,Sahiwal,Pattoki,Okara,Kot Radha

Kishan,Raiwind Junction,Lahore Junction,Shahdara Junction,Gujranwala,Wazirabad

Junction,Gujrat,Lalamusa Junction,Jhelum,Gujar Khan,Chaklala,Rawalpindi,Taxila,Attock

Junction,Nowshehra Junction,Peshawar Cantt.

2.7 Routes Followed By Trains

SOURCE:http://education.lokoi.com/pakistan railways

Pakistan railway was founded in 1947 after the independence. At the time of independence

railway has 8,122 km of tracks. Pakistan had very good railway infrastructure at that time that

was built by Britain. Pakistan railway was running very successfully and saving lots of money

for the economy. Railway had added some new tracks and also started electric powered railway

tracks for some areas.

Pakistan railway was degrading from last decade but after formation of this government; railway

has stopped completely and now few trains can be seen on tracks. Still railway has more than
http://en.wikipedia.org/wiki/Khairpurhttp://en.wikipedia.org/wiki/Rohrihttp://en.wikipedia.org/wiki/Ghotkihttp://en.wikipedia.org/wiki/Sadiqabadhttp://en.wikipedia.org/wiki/Rahim_Yar_Khanhttp://en.wikipedia.org/wiki/Bahawalpurhttp://en.wikipedia.org/wiki/Multanhttp://en.wikipedia.org/wiki/Khanewalhttp://en.wikipedia.org/wiki/Mian_Channuhttp://en.wikipedia.org/wiki/Chichawatnihttp://en.wikipedia.org/wiki/Sahiwalhttp://en.wikipedia.org/wiki/Pattokihttp://en.wikipedia.org/wiki/Okarahttp://en.wikipedia.org/wiki/Kot_Radha_Kishanhttp://en.wikipedia.org/wiki/Kot_Radha_Kishanhttp://en.wikipedia.org/wiki/Raiwindhttp://en.wikipedia.org/wiki/Lahore_Railway_Stationhttp://en.wikipedia.org/wiki/Shahdarahttp://en.wikipedia.org/wiki/Gujranwalahttp://en.wikipedia.org/wiki/Wazirabadhttp://en.wikipedia.org/wiki/Gujrathttp://en.wikipedia.org/wiki/Lalamusahttp://en.wikipedia.org/wiki/Jhelumhttp://en.wikipedia.org/wiki/Gujar_Khanhttp://en.wikipedia.org/wiki/Chaklalahttp://en.wikipedia.org/wiki/Rawalpindihttp://en.wikipedia.org/wiki/Taxilahttp://en.wikipedia.org/wiki/Attockhttp://en.wikipedia.org/wiki/Nowshehrahttp://en.wikipedia.org/wiki/Peshawar_Railway_Stationhttp://education.lokoi.com/pakistanhttp://education.lokoi.com/pakistanhttp://education.lokoi.com/project-report-on-pakistan-railways/routes-followed-by-trainshttp://education.lokoi.com/pakistanhttp://en.wikipedia.org/wiki/Peshawar_Railway_Stationhttp://en.wikipedia.org/wiki/Nowshehrahttp://en.wikipedia.org/wiki/Attockhttp://en.wikipedia.org/wiki/Taxilahttp://en.wikipedia.org/wiki/Rawalpindihttp://en.wikipedia.org/wiki/Chaklalahttp://en.wikipedia.org/wiki/Gujar_Khanhttp://en.wikipedia.org/wiki/Jhelumhttp://en.wikipedia.org/wiki/Lalamusahttp://en.wikipedia.org/wiki/Gujrathttp://en.wikipedia.org/wiki/Wazirabadhttp://en.wikipedia.org/wiki/Gujranwalahttp://en.wikipedia.org/wiki/Shahdarahttp://en.wikipedia.org/wiki/Lahore_Railway_Stationhttp://en.wikipedia.org/wiki/Raiwindhttp://en.wikipedia.org/wiki/Kot_Radha_Kishanhttp://en.wikipedia.org/wiki/Kot_Radha_Kishanhttp://en.wikipedia.org/wiki/Okarahttp://en.wikipedia.org/wiki/Pattokihttp://en.wikipedia.org/wiki/Sahiwalhttp://en.wikipedia.org/wiki/Chichawatnihttp://en.wikipedia.org/wiki/Mian_Channuhttp://en.wikipedia.org/wiki/Khanewalhttp://en.wikipedia.org/wiki/Multanhttp://en.wikipedia.org/wiki/Bahawalpurhttp://en.wikipedia.org/wiki/Rahim_Yar_Khanhttp://en.wikipedia.org/wiki/Sadiqabadhttp://en.wikipedia.org/wiki/Ghotkihttp://en.wikipedia.org/wiki/Rohrihttp://en.wikipedia.org/wiki/Khairpur


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80,000 employees. Despite of many bailout packages; railway was not able to come out of this

disastrous situation. No one is Pakistan is serious to restore this national assets as it can work as

a life line for Pakistans economy. (M.REHAN SHAIKH DATED 21 JULY 2012)


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CHAPTER#3:

3.1 RESEARCH METHODOLOGY

Research methodology is based on secondary approach and the data has been collected from

various websites, blogs, and articles of news paper and from internet resources. In perspective of

data and analysis, this research is based on theory based analysis and it also has been included

the projected analysis of budget of Pakistan railways.

Research has been conducted through applying the qualitative approach through which data is

collected through newspapers, articles, blogs, and websites and from internet sources.

3.2 TIME FRAME

The Research will be completed in 1.5 month

Preparation of research proposal 7 days

Data collection 15 days

Data analysis 7 days

Drafting 7 days

Conclusion 3 days

Final report composing 8 days

CHAPTER#4 (CAUSES BEHIND THE FAILURE OF PAKISTAN RAILWAYS)

The main causes behind the failure of Pakistan railways are

Lack of resources and fuel Shortage of locomotives Political interference


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Corruption Poor maintenance of tracks and bridges Extra delays in timings Mismanagement and mal-administration by railway personnel.

These above views were mentioned by General Manager Operations Pakistan Railways Junaid

Qureshi while speaking at the Lahore Chamber of Commerce and Industry. Lahore Chamber of

Commerce and Industry President Farooq Iftikhar, in his opening remarks pointed out a number

of issues behind the deterioration of Pakistan Railways. ( P.R. Headquarters Office, Lahore,

Railways Department Printed At The P.R. Press, Mughalpura By Directorate Of Information &

Technology, 2010-2011.)( Tuesday, November 27, 2012)

The incompetent administration has failed to attain locomotives from any quarter

of the world. Passengers are suffering due to mismanagement of administration. Pakistan

Railways decision to suspend goods train service due to severe shortage of locomotives and fuel

is another blow to this organization. It is now basically financially bankrupt organization. In

other words it is on the verge of financial collapse.

The political interference, nepotism, corruption, poor maintenance of tracks &

bridges and mismanagement in almost every field are the major causes of failure of Pakistan

Railways. Pakistan Railways purchased 69 completely built locomotive units from China under

2003 agreement. These are about 37% cheaper than the European locomotives but considered to

be faulty. It is stated that 32 of these have already been scrapped.
http://www.nation.com.pk/


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This cheap and safe mode for passengers is now facing a number of issues. A number of services

of Pakistan Railways have been cancelled, suspended or terminated and many more will be

suspended in near future because of mismanagement and shortage of locomotives, fuel and

money.

According to Sheikh Rashid, the former railway minister, crankshafts of

locomotives worth Rs10 million were damaged because of the use of substandard lubrication oil.

It may be mentioned here that normally a locomotive consists of six traction motors while the

Pakistan Railways is operating them with only three or four motors. This is the major cause of

mid-way breakdown of trains. The passengers, in such a case, have to wait for a long time till

repair or replacement of faulty engine takes place. Naturally trains are too late and passengers

can be seen sitting at platforms with their luggage. A number of trains lack facility of light at

nights because of the failure of the generators and ill attitude of management. Another reason

that prevents people to go by train is increase in corruption by the ticketing officials.

Haji Ghulam Ahmed Bilour, federal minister for Pakistan Railways, is a very

controversial figure. He is considered to be somewhat responsible for the deteriorating situation

of Pakistan Railways. His viewpoint is that the whole railway system is obsolete. He complains

that half of the total locomotives are out of order. Almost 86 % bridges are more than 100 years

old. The trains, tracks and machinery are outdated or faulty. He says that Pakistan needs 25 to 30

engines annually. He is now making a plan to repair, hire or lease locomotives in collaboration

with the private sector. Moreover, he believes that a bailout package can be helpful to overpower

the crisis. According to him delay in funds to Railways is the root cause of the crisis. He accuses

the federal government for not releasing remarkable funds for the betterment of Pakistan


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Railways. All his plans may end in failure because of corruption in the management, financial

problems, his ill-advised attitude and lack of vision. The efficiency of the railway minister is

evident from its almost nil performance. He believes that two mafia gangs are very strong in

Pakistan Railways but finds himself incapable to take any action against them. He seems to be

too weak to solve the issues and problems faced by his ministry.

Sheikh Rashid Ahmad, former railway minister, blames corrupt officers of the

department for the present situation in Pakistan Railways. According to him only 156

locomotives out of 500 are in normal working condition. According to his statement 15,000

freight wagons are not playing in the country and the business has gone in the hands of the

private sector. He claims that 200 coaches and several locomotives, imported from China, could

have been manufactured in the local Carriage Factory in Islamabad. Due to

imported coaches and machinery several laborers have lost their jobs or sent on forced leave. A

limited number of loaders have been appointed by the administration on the platforms to carry

the luggage of the passengers. It is stated that a particular amount of money is received by the

administration as a bribe from these poor loaders. In return they are allowed to receive hundred

rupees from the passenger to carry the luggage. (ByMuhammad daheem)

Epaper.pakobserver.net/

Pakistan Railway Travelling in Pakistan, these days is a big hassle. It takes

more than one day's time to reach your destination by train whereas in developed countries, the

situation is totally opposite. Even India is ahead of us in terms of providing quality travelling to

its. A person needs a lot of free time to travel for work purpose or any emergency let alone a

vacation. Pakistan Railways is passing through a huge crisis and has completely failed because


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of extra delays. The reason is lack of resources and fuel. Many engines are out of order and rail

tracks are wrecked. Nothing is being done to fix them. Instead of improving Pakistan Railways'

operational mechanism is worsening day by day. (Pakistan observer, article by Mannan Saeed,

Islamabad)

4.2 Other issues behind the failure of Pakistan railways

Pakistan Railways have been running losses since mid seventies. This persistent failure owes to

absence of a clear direction for the organization, a pessimistic organizational ethos resulting from

years of decline and political interference indecision making to the detriment of commercial

feasibility .Organizational roles and responsibilities remain diffused which create issues

for accountability. A number of decisions have been centralized in the Board or the Executive

Committee of the Board that absolves officers at the operational level of any accountability.

While a detailed analysis of the organization requires a longer time period and more resources,

some major issues identified are:

4.3 Absence of Clear Direction

However, there was no clarity on a vision for a desirable change. The vague sense of vision and

direction also pervades the upper echelons of decision making. The Government has still not

been able to articulate Clear direction for the national railways. In any case, in the absence of an

overall national transport policy it is difficult to find a viable solution for railways in isolation.

4.4 Reasons of downfall of Pakistan railways


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Source: BLOGS.DUNYANEWS.TV/

There are some chronic problems that have perverted the per formance of Pakistan railways

whi ch have been menti oned below.

Shortage of Locomotives:The Pakistan Railways has a total of 546 locomotives but only 290 are on track while the rest are

out of order. Similarly, 70 per cent carriages are out of service. In a report submitted to Railway

Ministry, it has been disclosed that as many as 70 locomotives are awaiting spares at Pakistan

Locomotive Factory, Risalpur since 2004.

Eroding Market Share:

Railway sector in Pakistan has not maintained its position in the transport sector. The market

share of Pakistan Railways kept on declining with the passage of time. For example, annual

passenger volume carried by Pakistan Railways in late 1970s was approx. 145 million, which

has come down to 59 million in 1992/93. The freight business was of PR was 15 million tons in

late 1960s but has come down to 7 million tons. Roads have steadily become the more
http://blogs.dunyanews.tv/http://education.lokoi.com/project-report-on-pakistan-railways/reasons-of-downfall-of-pakistan-railwayshttp://blogs.dunyanews.tv/http://education.lokoi.com/project-report-on-pakistan-railways/reasons-of-downfall-of-pakistan-railways


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spreferred form of transportation. An example of PRs declining market share is that it is moving

only 11% of total petroleum products and 2% of the total containers.

4.3 Soaring Budget Deficit

The biggest problem for Pakistan Railways is the soaring budget deficit. Although railways are

traditionally not expected to earn profit. However, it is legitimate to expect from railways to

meet at least operational expenses. Today Pakistan Railways with Rs.334 billion liabilities is at

the verge of bankruptcy because of corruption, shortage of locomotives and losses incurred due

to the running expenses. According to one report Rs 21 billion is spent on wages and pensions

every month leaving the department less or nothing for maintenance of power and rolling stocks.

4.4 Huge Losses & Budget Deficit

The reason for this loss is the presence of unnecessary departments which are white elephant for

Pakistan Railways. The biggest among those is the Railways Police that takes over Rs 1.5 billion

including emoluments and other facilities followed by Stores and Purchase. These departments

should be abolished from Railways without further delay. Their utility for railways is marginal at

best. The Audit and Accounts, Railways Workshops Division, and General Administration staff

need drastic cuts. These organizations are heavily overstaffed. If they will continue to ignore the

presence of non-productive over staffed departments with very insignificant contribution in

overall performance of Pakistan Railways, the department will continue to decline. It shall never

be in a position to meet the expectations of public.

Railways are operating at low rates. A flexible policy for rates and fare requires to be adopted

whereby freight rates could be varied according to the type of commodities as well as direction.


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4.5 Mismanagement

Currently Pakistan Railways is facing acute shortage of locomotives and spare parts for

maintenance of out of service locomotives. Since independence little has been done to expand

the railway network in Pakistan. As per the reports compiled by the design team, Pakistan

Railways need 4050 locomotives annually to run its operations effectively. However, during

the past two decades only 100 locomotives have been added. The management of PR has failed

to generate revenues through use of assets like land, locomotive factory, carriage factory etc.

The focus of Railway officials is on getting new locomotives while ignoring the improvement in

operations and maintenance of existing locomotives. The plans to change broad gauge into

standard gauge at this stage are not just costly but also unnecessary.

4.6 Decreased Market Share

Over the years, Pakistan Railways could not maintain its share in the countrys transport sector.

With Railway ministry shutting down operations of various trains, it is no wonder that the market

share of Pakistan Railways in cargo transport has fall to mere 5% from 75% in 1960s and 1970s.

Around the world, railways are the cheapest and safest mode of transport and majority of goods

transport is carried out via railways. However, in Pakistan the situation is completely different.

The indifferent attitude of various governments, direct competition from NLC, container mafia

and bus mafia are all behind the drastic condition of Pakistan Railways today.

4.7 Corruption


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Corruption is the biggest problem Pakistan Railways is facing today. The Railway Department

has been suffering losses since years long. Contractor system is one of the causes of such losses.

Moreover, there are enormous irregularities in local purchases. The number of officers cadre has

increased considerably since 1977, mostly due to political appointments. It has been revealed

that the crises are self generated creating a space for more corruption and PRACS-Pakistan

Railways Advisory Commute Services is responsible for this mess.

Selective services have been privatized by allotting its contract to different private parties to

operate those privatized trains. Ironically the contract has been awarded only for ticketing and

like buss conductors those private firms after selling out the ticket deposits payments into the

Railways account. As per agreement after deducting its commission the contractors are legally

bound to deposit the funds into the Railway account but due to the nexuses between Railways

bosses and private contractors deposit the funds in private accounts. This illegal practice has

confronted Railways with financial crunch where as the officials of Railways are least bothered

for the interest of Pakistan. Some Railways circles insist that Pakistan Railways is still a viable

and progressive organization, provided the rampant corruption could be controlled.

In short Pakistan Railways is a classic example of bad governance, poor policies, corruption and

mismanagement.


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CHAPTER#5: Action planning for the Increasing the efficiency and effectiveness of

Pakistan Railways.

According to researcher`s point of view there have attained some results After a careful

diagnosis, the results were that Pakistan Railways need a mixture of techno-structural and

collaborative interventions to recover from the current crisis.

5.1 ChangingStructural Design

Pakistan Railways is a vertically integrated highly bureaucratic organization. The current

organizational structure is a mixture of functional and divisional structures. The positions are

divided into four classes:

1. Officer Cadre

2. Station Masters

3. Running Staff

4. Class Four comprises of labors, signal operators etc.

The structure needs to be revamped into a more leaner and flexible one. A combination of

divisional and network structure will be most appropriate for Pakistan railways. The PR

management can retain the structure based on current divisions and create a network of these

divisions for better management of operations and resources.

5.2 Downsizing


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The Pakistan Railways is an over staffed organization. Political appointments over the years have

added to the problem and are the major reason behind organizations financial troubles.

Departments like Railway Police, Stores & Purchase need to be abolished. Other over staffed

departments like Audit & Accounts, General Administration etc. need drastic cuts in workforce.

For successful implementation of downsizing be practiced.

5.3 Reengineering

Pakistan Railways have great potential for growth. However, the current process and technology

does not provide much room for implementing growth strategies. Pakistan Railways can

improve the performance of its various functions and department through proper use of

information technology. The areas where information technology can play a vital role include:

Seat Reservations Freight Management Asset Management Track Management Rolling stock inventory Electric Billing Timetable

5.4 Alliance Interventions

Apart from techno-structural interventions, Pakistan Railways can make good use of

collaborative interventions to improve productivity. Instead of hiring information technology and

database experts, Pakistan Railways can create an alliance with National Database &

Registration Authority (NADRA) for developing Track Management and Seat Reservation


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Systems. Similarly Pakistan Railways can create alliance with China Railway Engineering

Corporation (CREC) for expansion of railway tracks in Pakistan.

5.5 Network Interventions

With the help of Public-Private Partnership, Pakistan Railways can create networks to operate

some of its route for privatized trains. For creating such a network, PR can call for a private

investors convention and brief those about the available opportunities select the organizations

that can fit in the network best and implement networking strategies and evaluate the

performance of networks periodically.

For small routes Automatic Train Operation System can be implemented by creating a network

of Pakistan Railways with US General Railway Signal Corporation (GRS), UK Westing House

and Siemens Germany.

5.6 Comparisons

Pakistan Railways In 1861

It was not very long ago when Pakistan railways was one of the three best railway systemin Asia.

The number of locomotives was that Pakistan railways claim to win its 502. The condition of the engines was efficient

Pakistan Railways 2012

Pakistan has now is very poor railway department because is facing losses due tomismanagement, poor maintenance and weak ticket checks that allow people to get

away with paying for their tickets.


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A shortage of locomotives has compelled Pakistan railways to suspend more of itspassenger trains.

There is no any proper maintenance of engines and a lot of tear and wear has been found.Pakistan Railways is A Failure

An official, on condition of anonymity, said the Pakistan Railways was facing losses

because of mismanagement, poor maintenance and weak ticket-checking allowing people to

get away without paying. Some political powers have also influenced the workings of the

Railways, he said, adding that the federal government set the fares for PR, irrespective of the

losses incurred (By Inaam Rao Monday, 8 Aug 2011 1:02 Am the International News Paper)

Recommendations

First of all government should eliminate corruption in railway department. Government should ask Chinese for help in order to make it profitable organization

because china has made wonderful progress in railway industry

Pakistan is blessed with coal reserves and single THAR coal reserve of SINDH is about850 trillion cubic feet which is more than oil reserves of KSA and IRAN put together

375 billion barrels.

Pakistan railways should be privatized. This is also solution of problem because currentlygovernment of Pakistan has to be appeared the huge losses monthly.

Conclusion

The political interference, nepotism, poor maintenance of track locomotives couches, bridges and

mismanagement in almost every field are the major causes of failure Of Pakistan railways.

locomotives purchased from china had been broken down may be mentioned here that normally


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a locomotive consists of six traction motors while Pakistan railways is operating them with only

three or four motors. This is major cause of mid way of breakdown of trains.

With growing interest in the development of Trans-Asian rail links, one might think that Pakistan

Railways has a promising future. However, the Railway Ministry, the Railway Board and all the

relevant agencies have to play their role to return Pakistan Railways to its glorious days. Before

allocating any further funds to bail out the organization, government should force the

management to undergo vast structural changes as recommended in this report. These changes

can be implemented within a period of 3 5 years and once the changes have been made and

evaluated then new investment plans can be made.

BIBLIOGRAPHY & REFERENCING

1. (P.R. Headquarters Office, Lahore, Railways Department Printed At The P.R. Press,Mughalpura By Directorate Of Information & Technology, 2010-2011.)(

Tuesday, November 27, 2012)

2. . (ByMuhammad daheem) Epaper.pakobserver.net/3. (Pakistan observer, article by Mannan Saeed, Islamabad)4. BLOGS.DUNYANEWS.TV/ 5.6. www.pakrail.com, www.railwaygazette.com andwww.pakistaniat.com7. (By Inaam Rao Monday, 8 Aug 2011 1:02 Am the International News Paper)8. ( 2008 , Tues day Sep t ember 16 ) , Da i l y t i mes webs i t e 9. National transport policy, the chartered institute of logistics and transport

Pakistan, (2008, October).
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1 0 . Pakis ta n ra i lw ays an nual book, (2008/2006/2007)11. Central superior services Pakistan, blog by dr. farrukh malik12. Lending for railways; Pakistan, the World Bank website, 200113. Ministry of railways- government of Pakistan14. Encyclopedia Indian railways history

http://www.experiencefestival.com/a/indian_railways_-_history/id/1501487

15.Study conducted of Pakistan railways advisory and consultancy services (pracs)16.Prepared by javed hasan aly abdus sami khansheherbano burki faiza ghaffar khan web

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17. Economic survey of P akistan (2008/09)18.The chronology of Pakistan rai lways by owais [email protected](last

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19.12.History' page Pakistan railway web site: http:// web si te :http://www.pracsltd.com.pk20.14. A public sector project in response to the given subject overview and analysis of

transport sector in Pakistan by dr. m. awais

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22.16. (Friday, September 28, 2012,

zeqad 10, 1433).

2 3 . 17. tribune express, Pakistan railways crisis (b y M u h a m m a d d a h e e m )24.18. c o p y r i g h t @ 2 0 1 2 e d u c a t i o n . p o w e r e d b y , t h e m e s b y q a z p o . c o m25.19. Human resources development policy - Pakistan railways (by maqsood a. khan)26.20. http://education.lokoi.com/pakistan railways
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27.21. History page Pakistan railway web site: http://www/pakrail.com28.22.http://findarticles.com/p/articles/mi_hb092/is_n5_v24/ai_n28626234/19 hundred years

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2011

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company-lhc-told/

39.Pakistans economy. (M.Rehan Shaikh Dated 21 July 2012), http://www.aaj.tv/author.40.http://tribune.com.pk/story/413544/bad-deals-railways-can-buy-engines-from-chinese-

company-lhc-told/by by Azhar Nadeemon June 20, 2012.

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