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HOW TO INCREASE THE EFFICENCY OF PAKISTAN RAILWAY 1 LETTER OF TRANSMITTAL Mr. Farrukh Naveed Research Supervisor Department of Commerce The Islamia University, Bahawalpur 29 Jan, 2010 Subject: RESEARCH REPORT ON “HOW TO INCREASE THE EFFICENCY OF PAKISTAN RAILWAY”. Reverend Sir, This research report is in response to your request to find out the “HOW TO INCREASE THE EFFICENCY OF PAKISTAN RAILWAY”. This research report
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  HOW TO INCREASE THE EFFICENCY OF PAKISTAN RAILWAY LETTER OF TRANSMITTAL Mr. Farrukh NaveedResearch Supervisor Department of CommerceThe Islamia University !aha alpur  29 Jan, 2010 Su#$ect%   RESEARCH REPORT ON “HOW TO INCREASE THE EFFICENCY OF PAKISTAN RAILWAY”. Reverend Sir, This research report is in response to your re&uest to find out the ' HOW TO INCREASE THE EFFICENCY OF PAKISTAN RAILWAY  (. This research report ill provide you the overvie of the research pro$ect. This report ill assist you to understand the research. )e ill #e *lad to accept any su**estion and additional information from your side. If you have any &ueries relatin* to the research it ill #e our pleasure to respond you.Thank you for this opportunity and confidence hich you sho to us. +ours sincerely SOLEMN GROUP  BUSINESS RESEARCH REPROT1  HOW TO INCREASE THE EFFICENCY OF PAKISTAN RAILWAY The current study remains limited in its scope as it looks at the pro#lems faced ,akistan Rail ays and there solutions not at the or*ani-ation as a hole. To undertake the task team ent throu*h the eistin* literature on ,akistan Rail ays revie ed the current state of affairs throu*h availa#le data consultations held ith online researches a#out Indian turnover of rail ays and the or*ani-ation.,akistan Rail ays have #een runnin* losses since mid seventies. This persistentfailure o es to a#sence of a clear direction for the or*ani-ation a pessimistic or*ani-ational ethos resultin* from years of decline and political interference in decision makin* to the detriment of commercial feasi#ility./r*anisationally roles and responsi#ilities remain diffused hich create issues for accounta#ility. 0 num#er of decisions have #een centrali-ed in the !oard or the 1ecutive Committee of the !oard that a#solves officers at the operational level of any accounta#ility. Financially ,akistan Rail ays have alarmin* fi*ures and over the years it has #ecome chronically dependent on overdraft from the State !ank of ,akistan. The fiscal space for operations and maintenance has #een constricted2 declinin* from 345 in 6736839 to only 6:5 #y 677;87<.For all these pro#lems e have *iven our #est conclusions opinions and su**estions ill #e very helpful in improvin* the efficiency of ,akistan rail ay. BUSINESS RESEARCH REPROT2  HOW TO INCREASE THE EFFICENCY OF PAKISTAN RAILWAY RESEARCH OBJECTIVES: The study is part of a lar*er consultancy #ein* undertaken in con$unction ith a separate team. The terms of reference assi*ned to this team have *enerated the follo in* outputs%   )hat are the mean hurdles faced #y ,akistan Rail ay in deliverin* its efficient performance=  )hich factors are responsi#le for these inefficiencies=  >o to overcome these inefficiencies=  )hat are the different procedural steps for turnover of ,akistan Rail ay= Time Frame The Research will be completed i oe moth starti! rom starti! rom 22#12#2$$% to 2%#$1#2$1$&&  Preparatio o research proposal ' da(s  )ata collectio ' da(s  )ata aal(sis * da(s  Cocl+sio 2 da(s  ,ial report composi! - da(sBUSINESS RESEARCH REPROT.  HOW TO INCREASE THE EFFICENCY OF PAKISTAN RAILWAY  Introduction Pa/ista Railwa(s ha0e r+ losses sice the mid se0eties& These persistet losses ha0e ass+med a chroic stat+re ad coti+e to erode or!aisatioal assets e iciec( ad morale& A 0icio+s c(cle has res+lted wherei or!aiatioal problems icl+di! str+ct+ral ad le!al stat+s create the loss ad the iacial de icit +rther adds to ie iciec(& O0er the last twet( (ears a +mber o st+dies ha0e bee cod+cted to impro0e the state o a airs b+t these ha0e ot bee e ecti0el( implemeted& The Board has +der!oe 0ario+s tras ormatios ad there has bee a icrease i cetraliatio& This has added to the co +sio while the declie o Railwa(s coti+es& The !eeratio o railwa(me who had see better da(s o Pa/ista Railwa(s ha0e either retired or will do so i the ear +t+re& ,or most emplo(ees o Pa/ista Railwa(s losses ad deterioratio costit+te a imm+table realit(& ,aith i cha!e ad impro0emet hardl( e3ists& Re0i0al o a or!aiatio that has resi!ed to a de icit ad ail+re poses a challe!e or the co+tr(4s political leadership as well as its maa!emet& Howe0er re0ersal has to be p+rs+ed& There has to be 5or!aiatioal t+raro+d4& This report hi!hli!hts /e( actors ecessar( or e0et+al t+raro+d b+t does ot !o ito details o the etire or!aiatioal str+ct+re i its recommedatios& Howe0er it oc+ses o the desi! ad role o the ape3 str+ct+re& The sie o the or!aiatio ad the chroic at+re o declie that has persisted or thirt( (ears call or the re0ersal process to be BUSINESS RESEARCH REPROT6
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