CONTENTS OF THE NOTE FROM THE GM

A lot has changed since December last. We are moving too fast and I only hope and pray that we don't stumble.
    This part of the rail network was never driven by profitability but by strategy, to keep the Empire intact. Hence with rising wages, fuel costs and cost of utilities we gradually went into the red. Now saddled with a debt of over Rs.18.00 Billion (Indian Railways is saddled with Rs.56.00 Billion - Figures from "business today" on the net) we finally decided to wake up and look for other areas of revenue generation. We decided to go the JNR way - get into Railway Related Business (RRB).
Privatization which was much toted as the panacea of all evils is a thing of the past. Thus now its "privatization no" "Track Access or Concessioning yes"
We have hired experts from the market (exorbitantly high) to go about the RRB. By the end of 2003 we plan to generate an additional Rs.5.00 Billion from RRB and throw up a surplus of Rs.2.00 Billion annually. For some of the things we are doing please visit our new official web site at www.pakrail.com Please do make the correction on your site right away.
We have thus launched a three pronged attack
        - Improve our rotten image
        - Cut down expenditure
        - Increase revenues

In line with the above is a summary of what we have done so far since December 1999.

§ Restructuring December 29, 99.

§ Ministry of Railways & Railway Board merged resulting in substantial savings in terms of reduction in staff.

§ Two General Managers appointed one each for the Manufacturing & Services dealing with non core activities and Operations. Full authority restored to the General Managers.

§ DSs restored with unity of command.

§ Authority of G.M. restored. DSs & AGMs under G.M.

§ Setting up of a Vigilance Cell. Over 700 cases of irregularities & corruption detected.

§ Refurbishment of rakes. 7 Up/8 Dn Tezgam, Shalimar, Karachi Express, Khyber Mail and Quetta Express by December this year. Rakes of Sukkur and Allama Iqbal Express will follow. First of four rakes of Khyber Mail launched on August 14, 2000. First of three rakes of Quetta Express launched Oct. 5,2000. All refurbished rakes have generators aboard for improved train lighting and fans.

§ Non-essential staff slashed by 50% of sanctioned strength.

§ 2000 employees transferred from non-essential to essential categories after re-training.

§ Privilege passes reduced - no advance reservation on Privilege Passes. 50% payment on post-retirement passes.

§ Families no longer allowed on duty passes.

§ All Card and Metal passes to staff and officers withdrawn thus eliminating misuse.
Eleven employees removed from service for misuse of passes.

§ No leave allowed beyond two months except on medical grounds.
§ No extension of official accommodation after retirement for more than 6 months.

§ Out houses of railway residences allotted to employees resulting in saving of Rs.10
million by way of house rent.

§ Corrupt staff transferred from their bases of operations and action initiated against them.

§ Seven senior officers dismissed or compulsory retired and 0.6 Million recovered from their dues. Disciplinary action underway against others.

§ System of identity cards introduced for serving and retired employees. As a result 20,000 ghost pensioners have been eliminated. These will reduce the pension and medical bill
by approximately Rs.400 Million annually.

§ Undue Payment of overtime under pressure from the Unions discontinued. Saving 100 Million.

§ Ticketless travelling, reduced to a minimum resulting in enhanced revenues.

§ Dining cars, stalls, restaurants and Luggage Vans now being auctioned resulting in additional revenues of over Rs.200 Million annually.

§ Punctuality of important Mail and Express and Intercity trains up to 75-80% as compared to 5 to 9% last year.

§ Peshawar, Rawalpindi, Lahore, Karachi, Quetta and Multan developed as model stations.

§ Encroachment on Railway s commercial operational land and in colonies underway. Major operations carried out in Peshawar Lahore and Karachi.

§ Marketing Wing set up in August to generate revenue from Railway Related Business(RRB).
                - Commercial exploitation of land.
                - Franchises of soft drink.
                - Advertisement on Railway trains and land .
                - Cyber cafes at major stations.
                - Joint ventures with private companies and investors
    § Target for the current fiscal year Rs.1.6 billion.

§ Railways web site www.pakrail.com launched in July 2000.
                    - Train timings.
                    - Availability of reserved accommodation from Lahore will be extended to
                        Karachi, Rawalpindi and Lahore.
                    - Tenders.
                    - Development Plans
                    - Marketing
                    - Page for steam buffs.

§ Reservation system at Lahore upgraded. Karachi, Faisalabad, Rawalpindi in the process of upgradation. Data communication channels taken from PTCL for linking up all the four Reservation Offices. Facility of return reservation now available

§ New Upper Class reservation office at Lahore will be inaugurated in October 21, 2000.

REVENUES

§ During the first quarter of the current fiscal year Pakistan Railway has generated Rs.385 million more than last year.

§ As a result, for the first time in the last eleven years we have met the target of Rs.2513 million for the freight and passenger business set by the Ministry of Finance.

Maybe all what has been stated above will be enough for you to update your link.

Fondest regards

Iqbal Samad Khan
General Manager
Pakistan Railways

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RRB
What has been done so far.

The PR have licensed out 80 sites to a foreign company for setting up Petrol/CNG pumps, on railway land for Rs.310 Million annually, which includes Rs.125 Million as license fee in foreign exchange.
Toll tax on railway bridges levied which will bring in another Rs.51 million annually.
Coca Cola has been granted a franchise for the entire network for Rs.10 Million up front with equivalent annual rentals annually plus a commission on the number of crates sold – another ten million.
Advertising in and outside trains and at stations around Rs.200 million annually.
Deals with Mc.Donald, KFC, Pizza Hut underway. We want our platforms to look clean and beautiful – move out Chabriwallas, pakoreywallas, chaiwallas etc.
Parking lots outside stations will net about Rs.35 million annually. The one at Lahore alone was auctioned two months back for a staggering Rs.9.3 Million annually!!

(From a reliable Pakistan source. Name witheld at the party's request.)(slightly edited to ensure continuity)

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CUTTING EXPENDITURE

PR's EFFORTS IN 2001-2001

The PR introduced Employees Identity Cards, for pensioners with a lot of backup data on it. Result - they unearthed 19,000 ghost pensioners! which when translated into money comes to over Rs.300 Million.
Under pressure from the Unions, the labour of the workshops was getting overtime and piece work irrespective of the work done. This has been eliminated. Saving Rs.120 Million.
All saloons of railway officers withdrawn. They now travel with the public!! This is part of our own belt tightening strategy.
Parasites thriving on railway stations and colonies for free gas and electricity connections, have been denied this facility - annual saving of Rs.11 Million.
Large number of servant quarters attached with bungalows of railway officers have been given to railway employees. Saving house rent which the railway pays to such employees to the tune of Rs.15 Million annually. However the number of servent quarters that can be retained by an officer has been limited from two to four depending on his rank. 14 servant quarters attached with my residence have been allotted to serving employees!!
Railway hospitals have been privatized and given to private Medical Colleges with detailed agreements for treating railway employees free as well as providing medicines. Saving - Rs.25 Million annually.

(From a reliable Pakistan source. Name witheld at the party's request.)(slightly edited to ensure continuity)

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