Pakistan Railways has fired 18% of his “unnecessary staff” as part of his efforts to improve performance and align with the reform agenda ordered by the International Monetary Fund (IMF), according to Prime Minister Shehbaz Sharif on Monday.
The measure is a key step in the implementation of the ambitious reforms required by the IMF in its financial rescue program of 7 billion dollars.
During a meeting chaired by the Prime Minister to review the performance of the railway sector, the prime minister ordered the organization to modernize its operations. He highlighted the need to attract passengers offering competitive and improved travel services through public-private associations.
He also instructed Pakistan Railways to hire professional and qualified labor, replace obsolete systems with modern technology and develop a comprehensive strategy to increase regional trade, especially with the countries of Central Asia.
In addition, the prime minister asked Pakistan Railways to use his vast land assets for commercial activities in collaboration with the private sector to generate income.
The prime minister’s office (PMO) reported that Pakistan Railways suffered losses for 10 billion rupees during the devastating floods of 2022, when much of his infrastructure remained submerged for 35 days.
Despite the reverse, the railroads improved their performance in the following months and obtained profits equivalent to the initial cost of their load operations, the PMO said.
The aim of transforming Pakistan Railways into a self -sustainable and efficient organization capable of playing a fundamental role in the country’s economic development.
However, dismissals highlight the difficult decisions that are being made to meet the IMF conditions and improve the long -term viability of state companies.
The IMF has long recommended to improve governance in state companies (EPE) that generate losses, such as Pakistan railroads, which have accumulated billions in losses over the years due to poor management, operational inefficiencies , the great debts and corruption.
The privatization of public sector organizations and the reduction of excess personnel are among the critical reforms that Pakistan has undertaken to boost their economy in difficulties.
Pakistan railroads, plagued by infrastructure with decades of seniority and poor management, have been particularly affected. The organization has faced frequent trains accidents due to obsolete signal and pathways systems, which further tarnishes its reputation.
