ISLAMABAD: In a significant move towards restructuring, Pakistan Railways has laid off 18% of its workforce, identified as “unnecessary staff,” Prime Minister Shehbaz Sharif was informed on Monday. This পদক্ষেপ comes as part of broader efforts to enhance the organization’s performance and adhere to reform requirements set by the International Monetary Fund (IMF).
The workforce reduction is a crucial component of the ambitious reforms mandated under the IMF’s $7 billion financial bailout program for Pakistan.
During a meeting focused on the Railways sector’s performance, Prime Minister Sharif directed the organization to modernize its operations. He emphasized the importance of attracting passengers by offering competitive and improved services through public-private partnerships.
The Prime Minister also instructed Pakistan Railways to recruit skilled professionals, replace outdated systems with modern technology, and formulate a comprehensive strategy to boost regional trade, particularly with Central Asian countries.
Furthermore, he urged the organization to leverage its extensive land holdings for commercial activities in collaboration with the private sector to generate additional revenue.
The Prime Minister’s Office (PMO) revealed that Pakistan Railways incurred losses of Rs 10 billion during the catastrophic floods of 2022, which submerged much of its infrastructure for 35 days.
Despite this setback, the PMO stated that Pakistan Railways has demonstrated improved performance in recent months, achieving profits equivalent to the initial cost of its freight operations.
The ongoing reforms are designed to transform Pakistan Railways into a self-sustaining and efficient entity that can contribute significantly to the nation’s economic development.
However, the layoffs underscore the difficult decisions being implemented to meet IMF conditions and improve the long-term financial health of state-owned enterprises.
The IMF has consistently advocated for improved governance in loss-making state-owned enterprises (SOEs) like Pakistan Railways, which have accumulated billions in losses over the years due to a combination of factors, including mismanagement, operational inefficiencies, substantial debt, and corruption.
Privatization of public sector organizations and reduction of excessive staffing are among the key reforms Pakistan is undertaking to revitalize its struggling economy.
Pakistan Railways, burdened by decades-old infrastructure and management challenges, has been particularly impacted. The organization has also suffered from frequent train accidents attributed to outdated signal systems and tracks, further damaging its public image.
