Pakistan Railways is a department of the Government of Pakistan (GOP). The network has 7,791 route km, 559 stations and it has an annual revenue of around Rs.20 Billion (2007-2008). Pakistan Railways came into existence under a different name on 13 May 1861, when Kotri and Karachi two stations 169 km. a part were linked by rail. In 1947, it was named as Northwestern Railways, had 11,088 routes Km of which 3043 were transferred to India. Leaving 8,045 Km to Pakistan. In 1961, it was named as Pakistan Western Railway and in 1974 as Pakistan Railways.

Ministry of Railway is responsible for overall control of Pakistan Railways as well as to guide the overall policy. There are four (4) Directorates in this PR 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, Secretary, Ministry of Railways is also ex-officio Chairman of the Railway Board.

Pakistan Railways at this time is a vertically integrated organization and has four business units. Pakistan Railways is headed by a General Manager, who is the Chief Executive Officer assisted by four Addl. General Managers, namely, Infrastructure Business Unit, Passenger Business Unit, Freight Business Unit and Manufacturing and Services Unit that looks after: Concrete Sleeper Factories, (CSF), and Carriage Factory. Islamabad, (CFI), Locomotive Factory, Risalpur, Rehabilitation Project, Medical and Health Service. Railway Construction Company (RAILCOP), Pakistan Railway Advisory & Consultancy Services (PRACS) and Educational Facilities).

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.

In the late 1990s, the Government of Pakistan considered selling the airline to the private sector due to the persistent losses suffered by the airline.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. Secretary to the Government of 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 GM and assisted by four Addl. General Managers.

This Organizational structure designed to create a commercial environment is now in the process of implementation.

Financial Performance of Pakistan Railways for 2006-07 and 2007-08:

 

The domestic transportation system in Pakistan primarily comprises of the Road, Rail and Air. The growing economy is imposing strains on the transport sector.

The total roads of all types are estimated at 258,350 kms. Of which high type roads are 176,587 km. and low type roads are 81,761 kms. The highest density remains on the Grand Trunk Road running from Peshawar to Karachi. The first segment of an alternate motorway form Islamabad to Lahore and Islamabad to Peshawar has been completed. With other sections to be constructed shortly. The national highway carries 96 percent of the freight and 91 percent of passenger traffic.

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 1970’s 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 1960’s but has come down to 7 million tons. Roads have steadily become the more preferred form of transportation. An example of PR’s declining market share is that it is moving only 11% of total petroleum products and 2% of the total containers. A more professionally managed and independent railways have immense growth potential.

Pakistan International Airlines (PIA), the national carrier, is carrying the bulk of the air travel services within the country. With deregulation of the air sector in the 90’s, three other private airlines have entered the domestic market and international market.

The Railway Regulatory Framework is now under preparation.

The broad objectives of the proposed Regulatory Policy are:

• To regulate the establishment, working, and provision of railway services in Pakistan
• To promote and protect the interests of users of railway services
• To promote competition in the provision of railway services
• To encourage investment in railway infrastructure and rolling stock by the private sector and
• To promote efficiency and economy in the provision of railway services
• To resolve disputes arising in the industry.

The Regulator is expected to have three major functions:

• Overseeing the rules and conditions establishing access to infrastructure and approving access contracts
• Licensing private train operations and resolving disputes of regulatory nature
• Managing Public Service Obligations for the Military and other Passenger traffic.

• The unbundling of Pakistan Railways into core business units (Infrastructure, Freight and Passenger) is under process
• Managing Directors (MD) for the three core business units Infrastructure, Freight and Passenger have been appointed.
• A notification for the operation of the core business units and delegation of powers to the MDs has been issued. Operation of the three units has commenced from September 1998.
• Accounting separation and segregation of assets is being formalised.
• Non-core assets will be evaluated and prepared to be sold through open auction.
• Regulatory environment is being established.
   

Sale/Concession of three core business units of Pakistan Railways (PR) i.e. Infrastructure, Freight and Passenger units
Non-core units: Locomotive factory, Sleeper factories, Carriage Factory etc.
Railway land and other properties.
Transfer of Ancillary facilities.
Development of PR properties (e.g. Railway Stations in major cities)
Equipment/sections for preservation of Railway heritage.