ISLAMABAD: Pakistan Railways has sacked 18% of its “unnecessary staff” in a bid to improve the state-owned asset’s performance, Prime Minister Shehbaz Sharif was briefed on Monday according to a statement from his office, as Islamabad moves to implement ambitious reforms mandated by the International Monetary Fund (IMF) in exchange for a financial bailout.
Improving governance in loss-making state-owned enterprises (SOEs) has long been on the IMF’s list of recommendations for Pakistan, which has turned to the international lender for frequent financial bailouts, the latest of which was a $7 billion loan last year. Pakistan’s prolonged economic crisis has forced the country to implement an ambitious reforms program designed by the IMF, which includes privatizing public sector organizations and laying off unnecessary staff to enhance their revenue.
Pakistan’s SOEs have accumulated losses in the billions over the years due to mismanagement, operational challenges, high debt loads, inefficiencies and alleged corruption. Pakistan’s railways sector has also been poorly managed over the years, with the country witnessing several train accidents over the past few years due to decades-old signal systems and tracks.
Sharif chaired a meeting to review the railway sector’s performance on Monday which was attended by senior cabinet ministers and officials, the Prime Minister’s Office (PMO) said in a statement.
“As part of the Pakistan Railways rightsizing process, 18% of unnecessary staff has been laid off,” Sharif was briefed during the meeting, according to the PMO.
Sharif issued instructions to Pakistan Railways to attract passengers in a competitive manner, calling on the organization to provide better travel services to passengers through public-private partnerships.
He also instructed railways to hire professional and capable manpower, and replace its old system with modern technology that is more in line with today’s age, the PMO said.
Sharif was briefed that the railways suffered losses of Rs10 billion during the devastating floods of 2022, during which most of its tracks remained underwater for 35 days.
“Pakistan Railways improved its performance through various measures after the 2022 floods and has so far earned a profit equal to the initial cost of its freight operations,” the PM was told.
The Pakistani premier urged railways to use its land for business activities in collaboration with the private sector, directing it to formulate a strategy to increase trade in the region, especially with Central Asian countries.
