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Wednesday, 19 April 2023 21:05

Railway Department to be transformed to a corporation Featured

The government has initiated discussions for the transformation of the Department of Railways to a public corporation as part of the process of reforming the state-owned enterprises (SOEs) Trans port minister disclosed.

A public corporation or a statutory corporation is operated on a commercial basis and governed by a chairman and director board.

A department does not possess commercial qualities as such and is directly controlled by the government.

Reforming the SOEs has been prescribed by the International Monetary Fund (IMF) to qualify for financial assistance to tide over the current economic crisis.

The Department of Railways has been running at an annual loss of Rs.10 billion during the recent past years, and its commercial viability should be improved to make it more passenger friendly.

“In 2021, the Department generated revenue of Rs.2.6 billion. However, Rs.2.3 billion had been spent for the payment of overtime work by the employees, and Rs. 2.7 billion for salaries,” the Minister said.


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