Ayesha Saba

Public-private partnership (PPP) offers a viable approach to enhance revenue and bolster infrastructure for entities like Pakistan Railways (PR) and other financially struggling state-owned enterprises (SOEs), says an economic expert. Pakistan Railways is one of the most important and largest means of transport for both passengers and goods, but it is performing far below its true potential due to a variety of reasons. Saddam Hussein, a research economist at the Pakistan Institute of Development Economics (PIDE), said while talking to WealthPK that the main reason behind the below-par performance of PR despite its huge size was the shortage of skilled and expert manpower, lack of accountability and inefficient management practices. He said key positions in this huge SOE need to be filled strictly on merit basis to ensure that all the departments work efficiently and loopholes are plugged.

"The uplifting of this SOE is a mandatory element for the country's economy, as it is becoming a burden on the national exchequer. Without a team of experts and effective management, the PR or any other public organisation will never succeed in solving its problems," he maintained. Saddam said the SOEs often face financial constraints, making it challenging to invest in infrastructure development and modernisation. He said the PPPs enable access to private sector funding sources, such as equity investments and loans, which can provide the necessary capital for infrastructure upgrades and expansions. This allows for faster and more substantial improvements to the rail network and other facilities. "Investing in infrastructure modernisation is another key aspect. The world is now moving towards a high-speed railway system, while the PR is yet to develop to modern lines," he said, adding that upgrading outdated rolling stock, improving tracks and signalling systems, and renovating stations will enhance operational efficiency and attract more business.

He said modernised infrastructure will enable faster, safer, and more reliable train operations, ultimately boosting the revenue. Saddam said the PR should adopt the latest technologies and state-of-the-art equipment to prevent accidents as well as attract foreign and domestic investment. The Public-Private Partnership Authority is currently working on three projects of the PR for construction in the PPP mode, which include the Karachi Circular Railway (KCR), Karachi-Pipri Freight Corridor, and Thar Coal Block II Railway Link. The KCR project is ready to be floated in the market, while the other two projects are under evaluation. It is an important part of the Karachi Transformation Plan and will play a pivotal role in providing an affordable and reliable public transport system to Karachiites.

Credit: INP-WealthPk