Friday 7 March 2014

Why State Owned Enterprises (SOEs) underperform? Case of Pakistan Railways-1



In every country, developed or developing, general public has been complaining against the state owned enterprises about their performance. Ranging from inefficiency, poor service delivery, non-friendly customer behaviour of the employees, inadequate complaint redressal mechanism to corruption and bad governance are some of the common allegations leveled against these enterprises.
In this series of articles we will be discussing the case of Pakistan Railways -nature of the complaints against its performance, their underlying causes, structural, managerial or otherwise and suggest a way to improve its efficiency and service delivery. The lessons learnt, conclusions drawn and suggested way forward could be,more or less easily applied to other sate owned enterprises.

(Kindly read the full article at the following URLs)

http://www.shahidhussainraja.com/case-of-pakistan-railways-1

http://www.shahidhussainraja.com/case-of-pakistan-railways-2


2 comments:

  1. one more reason is closure of freight train

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  2. From Junaid Qureshi,ex.General Manager,Pakistan Railways
    "Sir You have very correctly analyzed the problems of railways.I have to add that the reason was also the non availability of proper forum i,e Railway Board to discuss purchases and other important issues. I as GM felt that the Railway administration and Ministry was not on same page the Ministry through procurement directorate purchased substandard locomotives and other costly machinery which will never improve the performance. We the Rail people say that there was shortage of funding from Govt but it was not exactly true .the funds were provided but wasted. the up gradation of infrastructure is an example rs 12 billion have been consumed but desired results as per Pc 1 could not be achieved an still Rs 10 billion are required to complete it the speed of the trains have been reduced to 95 km instead of increasing to 140 km a huge amount has been provided to signaling system but so far only few station have complete which hardly improve train operation. I tried to improve the things but undue interference from Ministry could not get results. I am of the opinion that the department is not capable of handling mega projects so we should handover these to foreign firms otherwise the funds wii continue to be wasted.The Railway system is to modernized completely with IT based system we in railways are performing in 21st century with the the set up of 19th century .You are well aware of the intrigues in railways and interference by political persons. I was handling problems without any support from ministry even than i increased the revenue by Rs 2.72 billion i have proved that with better management the things can be improved to some extent you in your paper shall recommend that larger share be given to international firms for maintenance of locomotive and up gradation of infrastructure for high speed.the management of stations shall be given to private sector
    Junaid Qureshi"

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