RAWALPINDI: Pakistan Railways, facing a severe financial crisis and persistent operational losses, has expanded its privatisation plan and decided to auction 15 passenger trains, up from an earlier list of 11 services. All 15 trains will be sold through an open auction scheduled for June 16 at the Railway Headquarters in Lahore, where a formal bidding session has also been convened.
Auction Details and Impact on Services
The booking offices have already suspended ticket reservations for all 15 trains. After privatisation, ticketing operations will be handled directly by the purchasing companies through station booking systems. This move is part of the government's broader strategy to involve the private sector in railway operations to improve efficiency and reduce financial burden.
Background of the Crisis
Pakistan Railways has been struggling with mounting debts and operational inefficiencies for years. The decision to auction trains aims to generate revenue and attract private investment. The list of trains to be auctioned includes both express and mail services, which are among the most popular routes.
The government hopes that privatisation will lead to better service quality and punctuality, as private operators will be incentivised to maintain high standards. However, concerns have been raised about potential fare hikes and job losses for railway employees.
Bidding Process and Requirements
The auction will be conducted transparently, with interested parties required to submit bids in sealed envelopes. The winning bidders will be responsible for the operation and maintenance of the trains, including crew management and onboard services. The railway infrastructure, including tracks and stations, will remain under government control.
This development marks a significant shift in Pakistan Railways' approach, as it moves from a state-run model to a more market-oriented one. The success of this initiative could pave the way for further privatisation in the sector.
