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SIEMENS

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Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical

engineering, operating in the industry, energy and

healthcare sectors.

The company has around 400,000 employees (in

continuing operations) working to develop and manufacture

products, design and install complex systems and projects,

and tailor a wide range of solutions for individual requirements.

Our Values and Vision: a guide to our business conduct

Our stakeholders ² customers, shareholders, employees, suppliers and the societies in which

we operate ² expect the highest performance and the highest ethical standards. Meeting these

requirements is the ultimate determinant of our success.

Reaching this goal requires a new balance in which values, business operations and the pursuit

of our vision co-exist harmoniously. After closely examining our history and culture, we

distilled our essence into three core values: Responsible, Excellent, and Innovative.

These values supersede our former ¶principles· and must be lived interdependently. For each

value, we have derived clear principles that guide our decision-making and behavior. They

must be embedded in everything we do at Siemens.


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ur values drive our vision which shows how the highest performance and ethical

standards can deliver profitable growth. With the support of everyone at Siemens, it

will enable us to become a role model for outstanding business conduct.

ôesponsible: Committed to ethical and responsible actions

At Siemens, we are determined to meet - and wherever possible, exceed - all legal and ethical

requirements. ur responsibility is to conduct all business according to the highest

professional and ethical standards and practices: there must be no tolerance for non-compliant

behavior.

The principles related to ¶Responsible· serve as the compass by which we navigate our way

through our business decisions. We must also encourage business partners, suppliers and other

stakeholders to adopt a similar standard of ethical behavior.

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Our principles:

½c We obey the law

½c We respect the dignity of all people

½c We foster health and safety

½c We conduct business in a truthful and transparent manner

½c We are fair in our relationships with competitors and stakeholders

½c We honor commitments

½c We respect property

½c We strive for the protection of the environment

½c We are committed to good corporate citizenship

½c We are fully engaged and empowered to achieve the best results

Excellent: Achieving high performance and excellent results

We at Siemens set ourselves ambitious targets - derived from our vision and verified by

benchmarks - and give our all to achieve them. We stand beside our customers in the search

for perfect quality, coming up with solutions that exceed expectations.

Excellence demands we define a path of continuous improvement, constantly challenging

existing processes. It also requires us to embrace change so we are in the right place when new
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opportunities open up. Excellence also means attracting the best talent in the marketplace and

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giving them the skills and opportunities they need to become high-achievers. We are

committed to living a high-performance culture.

ur principles:

½c We set ourselves best-in-class goals and achieve them

½c We are passionate

½c We are willing to go the extra mile

½c We are disciplined and act fast and decisively

½c We always strive for improvements and perfect quality

½c We deeply understand our customers¶ needs and challenges

½c We systematically develop our personal skills and leverage our full potential

½c We interact in an efficient and pragmatic way

½c We embrace change to ensure we are competitive in the future

Innovative: Being innovative to create sustainable value

Innovation is a cornerstone of Siemens· success. We closely align R&D activities with business

strategy, hold key patents and have a strong position in both established and emerging

technologies. ur goal is to be a trendsetter in all of our businesses.


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We unlock the energy and creativity of our employees, embracing the new and

different. We are also ingenious and we embrace this quality in all its varied meanings

- original, inventive and resourceful.

We are entrepreneurs whose innovations are successful on a global scale. We measure the

success of our innovations by our customer·s success. We constantly renew our portfolio to

provide answers to societies· most vital challenges, enabling us to create sustainable value.

ur principles:

½c We create innovations that give our customers a unique competitive edge

½c We act as entrepreneurs

½c We are creative and open to new ideas

½c We are ingenious and visionary

½c We are trendsetters

½c We constantly challenge the status quo

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Siemens has shown that it is committed to the principles of good corporate governance and

that it is aware of its responsibilities as a global company ² for supporting the communities in

which it does business, and for leaving behind an intact environment for future generations.

The corporate strategy of Siemens has three main elements which are

½c   

  

½c P  

½c Ê  
 

The perspective of the corporate strategy is technological leadership and worldwide presence

by focusing on global competitiveness, customer focus and innovation. The company

emphasizes a lot on innovation which for them means the ability to transform knowledge,

creativity and experience into new products.

"Inventing the future" is Siemens· motto. Simply chasing after trends isn't enough for a global

corporation such as Siemens. Instead, it must identify promising ideas and new approaches at

an early stage, lay down a course of action and emerge as an innovation trendsetter. To achieve

this, Siemens is focusing on the future in numerous ways

A major challenge for Siemens is corporate responsibility. In terms of corporate responsibility,

the aim is to be an industry leader in the areas of corporate governance, compliance, climate

protection and corporate citizenship. This defines important management emphases for

Siemens corporate. Corporate responsibility is the integral part of the company·s corporate

program for 2010. Siemens view risk taking as the philosophy of pursuing sustainable growth

and creating economic value.


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SIEMENS RAIL INDUSTRY:

The

core

prod

ucts

for

railw

ay

logist

ics by

SIEM

ENS

inclu

de

the

follo

wing:

½c Rail automation, which includes spare parts and up to date railway related accessories.

½c Locomotives, which are used for trams and intra city tracks.

½c Electrification, which include state of the art electric supply system for maglev and electric

trains.

½c Light rails, which are also used for trams and intra city commutation.

½c Turnkey systems, which are specific trains designed for underground subway systems.
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½c Trains, which include high speed valario and other bullet trains

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½c Integrated services, which include software and hardware solutions for railway

logistics and supports.

½c Meavy rail, which are used for freight and cargo delivery.

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Major

faciliti

es of

SIEME

NS are

locate

world

wide,

provid

ing it a

compe

titive

edge

over

its competitors and enabling a R&D that is localized to every part of the world. This network of facilities

across the world enables SIEMENS to produce high quality products at cheaper prices, because it is able

to reduce its manufacturing costs as well as its distribution and transportation costs.

Currently SIEMENS is present in more than 40 countries of the world and its major facilities are located

across all the continents such as AMERICAS, EUR E, ASIA- ACIFIC and AFRICA.

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Siemens invest a lot in R&D and considers research to be the basic tool for their growth

in different countries of the world. Siemens innovation answers world·s toughest

questions. Its innovation in the night vision systems for cars, in 2005 sep 16,at the

International Motor Show (IAA) in Frankfurt, Siemens introduced a night vision system that

works with infrared technology. With this innovation, Siemens has also become the first

automotive industry supplier to create a prototype of an electronic pedestrian recognition

system. ne quarter of all serious traffic accidents take place in the evening or at night. And

about one third of all traffic fatalities are the result of accidents during these hours.

In 2006, Siemens introduced a thinking car. The car possesses sophisticated sensors, which

help to monitor traffic and warn drivers of dangers in advance. The car provides a more safe,

comfortable, reliable and environment friendly drive. Sensors warn the driver of obstacles on

the road even under poor visibility conditions, help park the car and also recognize traffic

signs. In a traffic jam, the thinking car tracks the vehicle ahead per video system and adapts

itself automatically to the traffic flow through independent braking and acceleration.

Siemens· innovation activities are based on the company·s Innovation Framework, a matrix

that defines what makes innovation successful. Along with technological know-how and

knowledge of customers needs and market trends, the factors affecting business success are

specialized sector know-how, excellent innovation processes and, above all, highly motivated,

highly skilled employees.

Siemens also employs innovation benchmarking. This helps them to pinpoint areas where they

are lagging behind and the position of the competitors, through this methodology they try to

catch up with the competitors. Mark Engelfried, senior consultant in the Competence Center
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for Innovation at Siemens CT (corporate technology).

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"With our innovation radar we can detect all the success factors behind the

innovation³from strategy and culture to technology and processes. f course, in

practice we don·t carry out a full assessment of every project. Instead, we focus on areas of

potential weakness, such as the innovation portfolio or innovation processes."

To maintain competitiveness, businesses must be fast and flexible. Digitalization and

virtualization have important roles in achieving these goals. Siemens uses the following five

main criteria for success in the Siemens Innovation Framework. These are closely linked as

shown in the picture.

Thus the company emphasizes on innovation and the reason for this innovation is their goal,

which is to become the world leader.

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At Siemens, corporate responsibility is a strategic managerial process aimed at integrating

business, environmental and social performance to create greater value and enduring benefits

within a framework of ethical practices. The figure also explains further

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Sales (millions of Euro, percentage


of total)

AMERICA 6EUROPE(excc
ermany

ERMANY ASIA-PACIFIC
AFRICA,MIDDLE-EAST,CIS
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½c å .4 billion were invested in R&D in fiscal year 2007

½c 2,500 R&D employees worldwide

½c 17,500 software engineers

½c 150 R&D locations in over

½c 0 countries around the world

½c 8,267 inventions in 2007


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½c 50,750 active patents

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‘ IN FAILIIES
‘ ESEN GLALLY

EUROPEc

ERMANY AMERICAc excludingc

ermany



ASIA- AFRICA,MIDDLE
PACIFIC -EAST,CIS
 

*The top manufacturing facilities are present in USA with about 21 facilities
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The global activities that are carried out by Siemens are divided in different groups with each

group specializing In their own domains and later the

integration of all the products and solutions that are

provided by the Groups is done to offer a world class

service to its customers. The T&S Group specifically

deals with rail automation and providing turn-key

solutions. The group has been engaged in producing a


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powerful freight locomotive that has the capacity of carrying upto 6ooo tons of weight!

In 2007 the profit margin of the group had increased from 1.6% to 4. % with a net

profit of about 190 million euros. The group as of 2007 employed 89,000 people worldwide


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The two foreign markets that is feasible for Siemens

Germany is China and India. This is because Siemens

already has increasing presence in the Chinese and Indian

Markets. It has been engaged in providing several high

speed trains to China and had also worked in collaboration

with Shanghai Metro Group since 1989. It has also engaged in the expansion of the metro in

Guangzhou since 1994. According to Siemens China is providing Siemens with a "strong base

in a dynamic environment"

India has been one of the major countries where

Siemens is catering to the electrical engineering and

electronic market. The country is offering tremendous

growth potential for infrastructure development for

Siemens. India is a "key market for growth" for

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Furthermore, according to the IMD World Competitiveness Scoreboard of 2007, China

is rated as 15 and India as 27 showing that the two countries provide a competitive

environment.1

 EN AILWAY N AS:


Some of the current railway contracts undertaken by Siemens are the following

½c In India, Siemens has established about 18 factories. Siemens is providing world-class

trains in India

½c In Russia, Siemens has signed a 0 year contract to provide its high speed Velaro trains

to the country

½c Siemens has shipped an eight carriage Velaro high-speed train to China in December.

The train can accommodate about 6oo passengers.2

½c Siemens has received a EUR 140 million contract from America which is one of the

biggest contracts to modernize its railway system and make it more efficient. The

project will be initiated this year.

½c A consortium made up of Siemens and its Chinese partner, CSR Zhuzhou Electric

Locomotive (ZELC), has been awarded the contract for metro projects in China. The

orders are worth a total of EUR 4 1 million. Siemens is responsible for the traction

technology and automatic train control systems.4

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½c Siemens signed a contract with orter book of UK

which is a rail leasing company to supply 7 units of Desiro electric multiple units in

2007.This contract is worth EUR 40million. orter book would further lease these

trains to the rail operator Govia5.

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The SIEMENS consider the following as their major competitors in the market

½c Alstom of France

½c Bombardier of Spain

½c Finmeccanica of Italy

½c Invensys of United Kingdom

S‘AIN

Mini bar in AVG train

The Bullet train network was built first time in 1992 in Spain. The country is known for

building the world·s fastest trains. The country uses modern technology in locomotives, signal

system, passenger and freight coaches and the laying of rail tracks in order to bring an overall

improvement in the railway network and operations through which akistan can benefit also.

Spain has been one of the countries where rail network plays an important role and there is a

demand for high speed trains. Currently the most popular high speed bullet train is the AVE
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train (Alta Velocidad Español) that is run on the Madrid-Cordova and Seville route. It can

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allow seating of above 00 passengers and apart from having seats comparable to first

class seats in an aeroplane, it also has a mini bar for the convenience of the customers.
6 Another high speed train is TALG that is also air conditioned to facilitate the customers in

the hot summers of Spain.

For cost conscious customers, government owned rail network F Spanish State Railways or

RENFE. A wide range of services is provided by the company including first and second class

seatings and special discounts for people under 26 years of age and senior citizens.

Currently Spain is also engaged in building a road link between Barcelona and the French

Border which also includes the passage of a tunnel underneath the mountains.

GE MANY
Germany is also one of those countries that are famous

for the provision of the world·s fastest trains. ne of

the popular trains is the DeutscheBahn Intercity

Express ICE with speed ranging from 175mph to

280mph linking various cities of Germany together.

ntercity Express, Germany

Germany is also building up its Trans rapid Maglev (magnetic levitation) train which can

travel 42mph

Iran has also partnered with Germany to build a Maglev line between Tehran and Mashad.

Siemens AG of Germany and RENFE also signed a contract to provide 16 high speed Velaro
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high speed trains for the Madrid-Barcelona operation line. These trains have a design

speed of about 50 km/hr.

F ANE
ne such company is Alstom that have produced trains with the travel speed of above 5 0

km/hr. n March, 2007 it has won two high speed rail contracts

worth 50 million Euros with China which includes the

manufacturing of 500 electric freight locomotives and building of

an electrified line linking the two cities Shijiazhuang and Taiyuan.

SNFC is the company that is running France railway networks .it is

also operating TGV trains (Trains à grande vitesse) are very popular in France which not only

provide dining service, but also have a nursery for children, sockets for computer plugging,

vending machines installed across the train etc. currently the TGV trains are the World·s fastest

conventional trains with speed capability of up to 574.8 km/hr.

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JA‘AN
Îapan was the pioneer in building railway network for

high speed travel. Railway lines in Îapan are operated by Îapan

Railway Group companies. The famous Shinkansen trains are

also operated by the ÎR group. The

trains are able to withstand the

earthquake and typhoon prone environment with travelling

speed of 00 km/hr. Îapan continues to refine its capabilities in

the bullet train category and the country is also working side by

side on the Maglev system as well claiming to achieve eventually a world record speed of 581

km/hr. The train known as the ÎR-Maglev is the world·s fastest non-conventional train. Russia

is in talks with Îapan to build bullet train lines running to the Black Sea resort of Sochi which

won the bid to host the 2014 Winter lympic Games.

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INA7
The country that is becoming a major economic power already has also placed great

emphasis on the rail networks as well. The Ministry of Railways reported to have

received RMB billion of foreign funds for the

development and up gradation of China·s railway sector

in 2006. Considering the population size and the

demand in the country the government is encouraging

further foreign investment in this important and

significant sector.

As mentioned earlier the contract that was signed with the French Company Alstom will allow

the travelling time to be even more efficient than that compared to air travel because the

network will link one city centre to the other.

Lang Guoping, Deputy Mead of the preparation tram with the Beijing-Shanghai passenger line

company stated that 80 % manufacturing of these high speed trains will be done in China. The

country has also established joint ventures with Siemens of Germany,

Alstom of France, Kawasaki of Îapan and Bombardier of Canada.

China is also developing its own Maglev trains that can travel up to

speeds of 500 km/hr. In 200 , it built a maglev link from Shanghai to its main airport which

was made using German Technology.


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AILWAY GAGE
The rail gauge is basically the distance that is present between the parallel railway lines. There

are basically three types of rail gauge that is used

½c Yarrow Gauge (about 3 ft 6 inches width)

½c tandard or International Gauge (4ft 8.5 inches)

½c [ide gauge (above 4ft 8.5 inches width)

There is a shift from narrow to standard gauge because the Standard gauge has a greater over

hauling capacity and is suitable for moving at much faster speeds than narrow gauge. At times

dual gauge are used which have -4 parallel railway lines that allow trains having different

widths to travel on the same path.

ELE I  AINS
1.c This type of locomotive derives its power from the following external sources

2.c Overhead lines or Third Rail. Usually the electric trains have three rails, 2 of the rails

are used for the wheels of the train with the third rail having overhead cables that

carry current. The overhead wires can carry voltage of up to AC 25,000volts. In Îapan

and France the electricity to run electric trains use nuclear power source. Others use

fossil fuels to generate the electricity.


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.c Rechargeable energy storage system such as a battery can also be used

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In various countries of the world electric trains are being used, indeed one of the

World's fastest trains the TGV of France and the Shinkensen of Îapan is also an electric

train. The infrastructure to develop the rail track is extremely expensive and can only be

possible through Government's financial support. The cost to electrify the train would be equal

to the cost of building the track itself. The trains are having the following characteristics

4.c The trains are almost noiseless as there is no engine or exhaust noise

5.c Maintenance cost is also low.

6.c In developed countries it is frequently used where there are frequent stops such as for

commuter rail service, and in areas with an advanced network.

7.c The trains will be benefit in those countries where there are depleting oil reserve

8.c They are more environment friendly than diesel locomotives if being produced from

renewable resources

IESEL-ELE I LMIVES
The second option that can be considered is the introduction of diesel-electric trains. With

such trains a diesel engine is basically used to provide the power to an electric generator that

basically drives the vehicle, it can be suitable during those journeys where there is a problem

of availability of an external power source. Although the technology has been brought about

after that of electric trains, still many countries are using the trains and secondly it also avoids

the extensive costs required for infrastructure development that is required for electric

locomotives. USA for example had de-electrified certain networks and has increase usage for

diesel trains because of their flexibility and low infrastructure costs.

The train is also more fuel efficient than the electric locomotive if the external power source is
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taken into consideration that drives the electric trains.

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The diesel electric technology apart from being used in trains is also used in buses,

submarines, ships cars and trucks.

MAGLEV  AIN
This type of train has revolutionized the railway industry. The train can reach record level

speeds of above 581km/hr. This is because of the fact that it does not need wheels to move as it

travels above ground level with the help of electro-magnetic induction thereby greatly

reducing ground friction with only the presence of negligible air resistance. The train operates

using three major components.

½c  powerful electric power source


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½c ‰arge guidance magnets attached to the underside of the train

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½c  track lined with metal coils

lthough the train can carry large number of passengers and does not cause pollution,

the magnets used demand a large supply of electricity hence are very expensive to operate. The

Shanghai Maglev train started operations in 2001-2002 which was built using the technology

of Siemens.

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IS Y F ‘AKISAN AILWAYS

The possibility of Karachi as a sea port was first noticed in the middle of

19th century. Sir Menry Edward Frere was appointed Commissioner of Sindh after its

annexation with Bombay in 1847 and sought permission from Lord Dalhousie to begin a

survey for a sea port. Me also initiated the survey for a railway line in 1858. It was proposed

that a railway line from Karachi City to Kotri, steam navigation up the Indus and Chenab rivers

up to Multan and from there another railway to Lahore and beyond be constructed.

It was on 1 May 1861, that the first railway line was opened for public traffic between

Karachi City and Kotri, a distance of 105 miles (169 km). The line between Karachi City and

Kiamar was opened on 16 Îune 1889. During 1897 the line from Keamari to Kotri was

doubled.

The railway line from eshawar to Karachi closely follows Alexander·s line of march through

the Mindu Kush mountains to the Arabian Se. Different sections on the existing main line from

eshawar to Lahore and Multan and branch lines were constructed in the last quarter of 19th

century and early years of 20th century.

The four sections, i.e., Scinde (Sindh) Railways, Indian Flotilla Company, unjab Railway and

Delhi Railways, working in a single company, were later on amalgamated into the Scinde,

unjab & Delhi Railways Company and purchased by the Secretary of State for Indi in 1885,
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and in Îanuary 1886, it was named North Western State Railways, which was later on

renamed as North Western Railway.

At the time of independence, 1,947 route miles ( ,1 km) of North Western Railways were

transferred to India, leaving 5,048 route miles (8,122 km) to akistan. In 1954, the railway

line was extended to Mardan and Charsada, and in 1956 the Îacobabad-Kashmore 2 ft 6 in

(762 mm) gauge line was converted into broad gauge. In 1961, the akistani portion of North

Western Railways was renamed akistan Railways. The Kot Adu-Kashmore line was

constructed between 1969 and 197 providing an alternative route from Karachi up the

country

akistan Railways is the state-owned railway company of akistan. It is a large organization

under the administration of the akistani Government's Ministry of Railways. akistan

Railways provides an important mode of transportation in the farthest corners of the country

and brings them closer for business, sightseeing, pilgrimage and education. It has been a great

integrating force and forms the life line of the country by catering to its needs for large scale

movement of people and freight akistan Railway comprises 8,775 route km, 781 stations and

42 train halts. It has a fleet of 546 diesel electric locomotives, 25,815 wagons and 2,099

passenger coaches. Maintenance is provided by three major locomotive workshops and thirty-

five smaller workshops.

AIL SAISIS F ‘AKISAN


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total ‰ength : 8,16 km

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Jroad gauge: 7,718 km 1.676-m gauge (29 km electrified)

narrow gauge: 445 km 1.000-m gauge (2006)

MAJ ES

The total length of railway tracks in akistan is 5,072 miles (8,162 km). The Jusiest routes

include:

½c ‘eshawar-Karachi ôoute

½c ‘eshawar-Quetta ôoute

½c ‰ahore-ialkot ôoute

½c ‰ahore-Faisalabad ôoute

½c Faisalabad-Khanewal ôoute

Major Stations and Îunctions

The major stations and junctions between eshawar and Karachi include:

eshawar,Darya Khan,Mianwali,Bhakkar,Kaloorkot Nowshehra În., ttock City,

Rawalpindi, Îhelum, ‰alamusa În., Gujrat, Wazirabad În., Gujranwala, ‰ahore, ‰ahore

Cantt., Raiwind În., Okara, Sahiwal, Chichawatni, Mianchannu, Khanewal În., Multan

Cantt., ‰odhran În., Bahawalpur, Samasatta În., Khanpur, Rahim Yar Khan, Sadiqabad,

annu qil Cantt., Rohri În., Khairpur, Bhiria Road, Nawabshah, Tandu dam,

Hyderabad În., Kotri În.,Îangshahi, ‰andhi În., Karachi Cantt. nd Karachi City.

The major stations and junctions between eshawar and Quetta are:
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eshawar to Rohri În. (same as above), Sukkur, Shikarpur, Îacobabad În., Dera Murad

Îamali, Sibi În., Ab-e-Gum, Mach Spezand În and Quetta

MAJ ES‘NSIILIIES
½c Improving Quality of ervice

½c ôeducing Expenditure

3c Cut down further on electric consumption

3c Reduced the work force by another 5000 employees through attrition and

rationalization

3c Sui Gas connections will be handed over to Sui Northern Gas to avoid extra

expenditure on bulk supply

½c Increasing ôevenues

3c urposed performance indicator

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EVENE EEI‘S
assenger Freight ther Earnings verall Earnings

Year Earning Earning


KMs TKMs
(Rs) (Rs) (Rs) (Rs)

200 -04 22.8 8.2 4.9 4.6 1.7 14.5

2004-05 2 .2 8.6 5.5 5.2 1.9 15.7

2005-06 2 .7 90. 6. 5.9 2.0 16.9

2006-07 24. 9.5 7. 6.9 2. 18.7

2007-08 25.0 10.0 8.4 7.9 2.5 20.4

2008-09 25.8 10.7 9.6 9.0 2.8 22.5

2009-10 26.8 11.7 11.1 10.4 .1 25.2

2010-11 27.9 12.9 12.7 11.9 .6 28.4

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‘AKISAN AILWAYS EVEL‘MENAL ‘LANS 2005-108


The below mentioned plans are the midterm plans that the organization intends to

complete in the time period of five years; it is significant to note that currently akistan

Railways has not included the feasibility study for metro train in its mid tern plan.

1.c Up gradation and improvement of track from Khanpur to Lalamusa

2.c Dualization of Track from Khanewal to Raiwind and Shahdara to Lalamusa

.c Setting up of a railway yard and railway linkage from Gwadar port to container yard

4.c Rail link from Gwadar ort to existing rail link at Ahmad wall on Quetta Taftan section

5.c Up-gradation of Rohri ² Quetta ² Taftan section

6.c Feasibility Study for provision of rail link from Dina to Mirpur AÎK

7.c Improvement and rehabilitation of old and obsolete signaling system on Karachi ²

eshawar section in phases

8.c Electrification of Lahore ² Khanewal double line section with rehabilitation of existing

single line Lahore ² Khanewal section

9.c rocurement/ manufacturing and assembly of 100 passenger coaches

10.c ther minor projects

The estimated cost of completing the above mentioned projects is approximately Rs. 124

Billion.

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ME NIZAIN AIVIIES9


The major emphasis of akistan Railways has been on the replacement of overage

assets. Due to resource constraint, however, it is now engaged in modernizing certain areas

as best as it can. These include the following:-

½c To ensure more comfortable journey it has been decided to manufacture only lower

class air-conditioned coaches in future.

½c All second class coaches are being provided with cushioned seats.

½c Reservation work has been computerized on modern lines at Lahore and Karachi

stations; the system's two major reservation centers. Computerization of reservation

offices of eshawar, Rawalpindi, Faisalabad, Multan and Myderabad is in progress and

is likely to be commissioned shortly. The steps are now underway to link these stations

with other major railway stations.

½c Closed circuit televisions have been introduced at Lahore, Karachi, Multan and

Faisalabad railway stations. This entertainment is being extended to Sukkur,

Rawalpindi and eshawar stations in the next phase. Subak Kharam and Shalimar

trains have also been provided with closed circuit televisions and this system is being

provided in Subak Raftar also.

½c ublic address system is being provided in Subak Raftar, Subak Kharam, and Tezgam

and Khyber Mail trains.

½c Modernization of Karachi, Quetta, Myderabad, Multan, Lahore, Faisalabad,

Rawalpindi and eshawar Railway stations, removal of hindrances on railway

platforms and up gradation of approach roads are being carried out.


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½c rivate Sector is being encouraged to participate in the activities of the system.

As a first step, ticket selling and ticket checking on Lahore-Faisalabad and Lahore-

Narowal-Sialkot Sections have been privatized.

½c Feasibility study for a high-speed track is in hand.

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GVE NMEN EGLAIN & ‘LIIES (INE NAINAL)10
Throughout the world, the rail industry historically has been one of the most extensively

regulated of all sectors. rice, entry, exit, financial structure, accounting methods, vertical

relations, and operating rules have all been subject to some form of government control. The

public utility paradigm of government regulation has been applied on the assumption that the

economic characteristics of the rail industry preclude competitive organization or the need for

market responsiveness.

In the past three decades, however, policymakers and economists have become increasingly

critical of traditional regulation of the rail industry. It is generally accepted that in markets

where rail carriers seek to meet demand, there is often effective competition and that

government restrictions on the structure and conduct of firms in this industry impose

considerable costs on society. Misguided regulatory policies have been blamed for the

misallocation of freight traffic among competing modes of transport, excess capacity, excessive

operating costs, and poor investment decisions. Regulatory controls have also shouldered much

of the blame for the poor financial condition of railroads, the deterioration of rail plant, the

suppression and delay of cost-reducing innovations, and the mediocre quality of rail service.

GVE NMEN EGLAIN & ‘LIIES (NAINAL-‘AKISAN)


The government has decided to restructure akistan Railways ( R) into a public sector

corporation in the process of developing a commercial approach and introducing professional


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management and private investment. The restructuring will be part of a major reform

exercise to revitalize akistan Railways to enable it to play its due role within the

transport sector and in the economic and social development of the country, the sources said.

akistan Railways Corporation will focus on core business of rail services, while the non-core

business entities such as factories, schools, hospitals and marketing of land assets will be

managed through subsidiary public limited companies which would function under the

administrative control of the Ministry of Railways through a holding company.

The manufacturing units of akistan Railways; the Carriage Factory, Islamabad; Locomotive

Factory in Risalpur; and Concrete Sleeper factories each at Sukkur, Khanewal and Kohat will be

transformed into separate companies under the company laws of the country.

There are certain benefits relating to this reform exercise:

p.c It would offload railway budget from the non- core activities

2.c It would facilitate manufacturing units to have their autonomous entities for seeking business

from the private enterprises

3.c It would facilitate preparation corporate plans and feasibility for their future operations and

implementation strategy.

4.c The manufacturing units will follow a policy for developing indigenous capabilities of the new

companies to design, manufacture coaches, locomotives and sleepers by developing research

and development activity, design centre, human and capital formation

5.c It would lessen dependence on foreign manufactures and develop potential to compete in

foreign markets.
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akistan Railways had recently launched the Bhambore Express to cater to the

requirements of the working class running between Rawalpindi and Karachi via

Sargodha, Faisalabad and Multan; it would take twenty-five hours to complete its journey

in. the introduction of high-speed train would reduce the time to 8 hours approximately

which would in turn make it easier for the citizens to travel on longer routes without

hesitation.

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Contingent liabilities are costs which the government will have to pay if a particular event

occurs. These are obligations triggered by a discrete but uncertain event. Contingent

government liabilities are associated with major hidden fiscal risks; a common example of a

contingent liability is a government-guaranteed loan. At the time a guarantee is entered into

there is no liability for the government, since this is contingent upon the borrower failing to

repay the loan as contracted. Mowever, in the event of default, the lender can invoke the

guarantee and the government will be obliged to repay the amount of the loan still

outstanding. At that point, the contingent liability will become an actual liability of the

government, and a payment must be made.

EX‘LII NINGEN LIAILIIES:

These are specific government obligations defined by a contract or a law. The government is

legally mandated to settle such an obligation when it becomes due. For example

‡ Guarantees for borrowing and obligations of provincial governments and public or private

entities.

‡ Umbrella guarantees for various loans (SME loans, agriculture loans)

‡ Guarantees for trade & exchange rate risks

‡ Guarantees for private investments


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‡ State insurance schemes.

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IM‘LII NINGEN LIAILIIES:

These represent a moral obligation or expected burden for the government not in the legal

sense, but based on public expectations and political pressures. For example;

‡ Defaults of provincial governments and public or private entities on non-guaranteed debt and

other obligations.

‡ Liability clean-up in entities being privatized

‡ Bank failures

‡ Disaster and relief financing.

‡ Failure on other non-guaranteed funds.

According to Table 1 and 2 in the appendix , During FY 2004-05, an amount of Rs. .24 billion

has been paid on account of debt servicing liability(Government guaranteed loans) and the

implicit contingent liabilities added up to Rs. .95 billion for the same fiscal year which

undoubtedly a huge amount. These figures are significant because of the fact that before

permitting akistan railways to invest in a project as expensive as the introduction of bullet

train, it is imperative to completely analyze the overall feasibility of the project so that in the

near future the budget can be saved from the contingent liabilities.

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       11- NLC (National Logistics

Council) in joint collaboration with a Dubai based group has offered akistan Railways to

operate their own container coaches between Karachi and Lahore in cargo operations. R

currently has only a four per cent share of the total freight business activity; the scope is

tremendous and opportunities for growth are unlimited as akistan is becoming a business

hub between Europe, Central and Middle East in the coming years. The volume of business

can be doubled in no time as there is great demand from the business community of akistan

to increase the number of fast cargo wagons from Karachi downwards. As a matter of fact

Migh capacity express container trains have been introduced, which operates daily between

Karachi and Lahore.


  12- This policy was initiated by akistan Railways to improve the efficiency

and overall business opportunity of the organization. According to this policy the private

parties can operate their own rolling stock while paying track access charges to Railways; this

would basically bring in some extra money in addition to the fact that these foreign

companies may be influenced to get their wagons manufactured at Carriage Factory

Islamabad and Mughalpora Workshop Lahore. This would not only save the foreign exchange

but also provide financial gains to Railways which is already involved in manufacturing of

such wagons at international standards.


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‘akistan ôailways & ‘akistan ‘ost 1 - akistan Railways and akistan ost signed an

agreement under which akistan ost will book railway tickets and seats in 16 cities of the

country; with the passage of time this facility would be extended to the whole country.

ôailway Ministry is trying to improve train food 14- akistan Railways has decided to contact

owners of renowned restaurants to serve food on major trains at subsidized rates and has sent

a proposal in this regard to the rime Minister·s secretariat for approval. akistan Railways

Advisory and Consultancy Services ( RACS) is currently responsible for managing food

services on almost all major trains. Railways authorities have warned RACS several times that

if they do not improve the standard of food and service R would award the tender to

restaurants or caterers. The ministry has now proposed that RACS will handle the catering but

would get the foodstuff from elsewhere in order to improve the overall quality of food.

Ministry allows Mobilink to install ‘CO͛s at railway stations 15- akistan Railways has allowed

Mobilink to operate and install C facility at railway stations across the country on urgent

basis as they have realized that it is unjustified to deprive over 80 million passengers and their

relatives who visit railway stations throughout the year, of this facility which makes them

communicate on cheaper rates. Mobile C s would also be introduced in near future enabling

rail passengers to be in contact with their families while travelling.

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The rail supply industry has successfully adapted to changing market conditions arising from

deregulation, market concentration and globalization. Today, the worldwide market for rail

technology represents a business volume of EUR 10 . billion. 70% of the overall market is

accessible to suppliers; the rest is work conducted by rail companies or municipal public

transport authorities themselves. ver the next ten years, the rail industry is expected to grow

at a real growth rate of 2% per year. The most important growth markets will be Eastern

Europe, CIS and Asia acific.), the continuing liberalization of the rail market as well as

railway maintenance needs will create new opportunities for the supply industry. According to

a study commissioned by UNIEF (Association of the European Railway Industries) 16the markets

of 41 countries have been analyzed, the analysis represents approximately 1.5 million

kilometers of tracks and 4.1 million units of rolling stock.

The industry was strong in the past and is currently showing positive trends as well. According

to an analysis conducted by Roland Berger Strategy Consultants on behalf of the Association of

European Railway Industries (UNIFE), the total world market for the rail supply industry is

estimated at EUR 10 billion, with an expected annual growth of between 1.5% and 2.0%1

over the next decade (see picture 1).

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There certainly exist excellent market prospects for mass transit and mainline systems as this

particular industry is playing a major role in the world economy as mentioned above earlier.

There are various reasons as to why the growth rate of 2% has been quoted, a few of them are

mentioned below:

½c Growing rail traffic volume will play a role, as will heavy urbanization and economic

growth in emerging markets


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½c Governments are showing increasing support for the development of railways

and public transport

½c Rail transportation plays an important part in the sustained development of their

economies

½c By2015 passenger traffic will have increasedby 0% and freighttrafficby70%;

½c 50% of the world's population today lives in urban areas. By 2020 this proportion will

have increased to 60% (in Europe it is already 75%)Strong need for mass transit systems

½c For travel times of less than 4 hours, high speed trains are more frequently used than

airlines

½c Migh-speed rail traffic in Europe has tripled in the last ten years

These figures definitely highlight the fact that a practical step has to be taken by all the

countries to cater to this future need and that great business opportunities exist for the

organizations involved in this Transport industry.

Markets in Eastern Europe, CIS and Asia are showing the strongest growth. Within the next

few years, these markets are expected to see annual growth exceeding %. This can be

explained by the economic and population growth in these regions, where the rail

infrastructure is outdated or underdeveloped. For example, China is the clear forerunner and

is quickly developing its rail and subway network.

In Western Europe and the NAFTA countries (US, Canada, Mexico), where the rail network

and rolling stock are well developed and firmly established, markets remain important because

of their sheer absolute volume. Despite low annual growth rates that hover between 0.5 and
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1%, Western Europe remains the rail supply industry's biggest market, accounting for 2%

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(EUR 4 billion) of total business. The light rail segment sees the highest growth in the

Western European market, with annual growth rates of %. The service, rolling stock

and passenger car segments are also growing at above-average rates. The NAFTA region

accounts for 22% (EUR 22 billion) of market volume.

The development of particular segments in individual countries and regions will vary

depending on factors such as national policy and procurement programs. A country·s

economic growth also affects development. Not surprisingly, the markets with the fastest

growth are to be found in developing industrial countries. Segments with higher-than-average

growth rates are the mainline superstructure in Asia, locomotives in CIS and Eastern Europe,

and metro rolling stock in Asia. Whilst rolling stock will grow strongly in Eastern Europe over

the next decade, in Western Europe business will remain stable.

The existing installed base in the 41countries analyzed in detail comprises 4.1 million units of

rolling stock and 1.5 million km of track ² twice to the moon and back. Upkeep ² maintaining

and replacing existing systems at the end of their useful lifespan ² is, and will remain, a key

factor driving the rail supply market. Services ² relating both the rolling stock and

infrastructure ² account for almost half of the total market. Furthermore, around 70% of

annual deliveries of rolling stock (for infrastructure even 80%) is as replacement rather than

for fleet or network expansion.

Europe, NAFTA and the Asia/ acific region are the key markets today (see picture 2). Yet this is

a dynamic, ever-changing industry. Eastern Europe and the Commonwealth of Independent


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States (CIS) will gain importance in the coming years. Western Europe, although growing at

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only 0.5% to 1% annually over the next decade, will remain the single most important

rail market. NAFTA, with its impressive services market, is in second place. Mowever,

Asia is expected to show higher growth rates, thanks to rapid development in this region. Rail

suppliers are companies that manufacture and service all the systems, sub- systems and

components used in modern urban, conventional and high-speed systems, including rail

infrastructure, rolling stock, and signal and telecommunication systems. While a handful of

multinational suppliers dominate the headlines, the sector is shaped equally by the thousands

of small and medium-sized suppliers and sub-suppliers.17

‘icture 2: Market volume, overall rail market [EUô bn]

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A Survey was conducted with a sample size of 60 students from various universities; the

sample size included male and females within the age bracket of 19 to 25 years of age.

The questionnaire has been attached in the Appendix for reference.

When asked about the opinion of the students on what factors may act as a threat to the

feasibility of bullet train in akistan, the below mentioned were the factors underlined by the

students:

p.c Infrastructure

2.c Government ‘olicies

3.c Demand

4.c Affordability

5.c Terrorism

From a total of 60 students 57% believed that infrastructure was a major threat whereas 5%

said that the government policies would create hindrances. 10% believed that affordability

with reference to the customer·s is going to be a major threat while 28% students believed that

the current political situation with reference to terrorism would make the project unfeasible to

take up in akistan. It is important to note that 0% out of the 60 students believed that there

existed no demand for the train; all of them believed that there was a gap between the supply

and demand of the travelling services provided to our population.


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Why would the Bullet Train


Project not be Feasible?

% Infras ruc ure



overnmen cPolicies
% Demand
%
Affordabili y
%
Terrorism
%

Another question was asked about whether Siemens should personally look after and supervise

the bullet train project or should the government of akistan be given the responsibility. In

answer to that 60% of the students voted for Siemens whereas 2% of them said that the

government of akistan should be given the responsibility; it should also be noted that 8% of

the students suggested that the project should be handed over to China.

Should Seimens Supervise the Bullet


Train Project?
Yes No W ycNo cC ina

%
%

%
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To analyze the general understanding of the public towards the introduction of bullet

train we asked them if according to them it was possible to take such an initiative. 5o%

of the students agreed whereas 0% negated any chances of such a project being initiated in

akistan; 20% were not sure about the possibility or impossibility of the project.

Ês the Êntroduction of Bullet Train


Feasible in Pakistan?
Yes No Maycbe

 % %

 %
 %

To analyze the importance of different national routes on which the service could possibly be

introduced; another question was asked. 47% of the students would prefer to go to Lahore,

29% would like to go to Karachi, and 4% to eshawar, 4% to Quetta and 16% would like to

travel to all these routes via the train service.

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Percentage of People Travelling From


Rawalpindi to Different National
Routes
La ore Karac i Pes aer Que a Allc ecabovecmen ionedcci ies

%
%
% %

%

We first surveyed the sample size on the fact that how many of the total number of students

actually travel by train and with what frequency. 45% of them travelled rarely, 29% travelled

occasionally, 16% were frequent while 10% of the students did not ever travel by a train.

Percentage of People Travelling by


Train
Rarely Ocassionally Frequen ly Never

%
%

%

After analyzing the percentage of people travelling by train we set out to determine the
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preferences of these students with reference to the mode of transport while travelling on

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national routes. 52% of the students preferred travelling by airplane while 20% of

them wanted to travel using their personal conveyance; 21% availed the services of bus

whereas only 7% would prefer to travel by train.

|ode of Transport that is Prefered


on National Routes
Airlane Car Bus Train

%

 %
%
 %

The same survey was conducted with a sample size of 50 individuals forming the different

population; the individual survey were mix of male and females in the age bracket of 0 to 55

years with a pay scale ranging from Rs. 20,000 to Rs. 70,000

According to these figures it can be predominantly analyzed that 88% of the population in this

segment preferred Siemens over the government of akistan when it came to the supervision of

the entire project. There was no individual voting for china as the project supervisor.

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Should Seimens Supervise the Bullet


Train Project?
Yes No W ycNo cC ina

%
% %

%

The introduction of bullet train is feasible according to 8% of the population of this particular

sample, interestingly 8% of them are not sure as to whether it would be possible to do so or

not; 24% believe that it is not in any case possible for such a project to be initiated in akistan.

Ês the Êntroduction of Bullet Train


Feasible in Pakistan?
Yes No Maycbe

% %

%

62% of the people would prefer to travel to Lahore by the train, whereas only 25% of them

would like to travel to Karachi via the railway service. There were 1 % who opted for the route

of eshawar while none of them wished to travel to Quetta or all the cities through this service.
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Percentage of People Travelling From


Rawalpindi to Different National
Routes
La ore Karac i Pes aer Que a Allc ecabovecmen ionedcci ies

% %
%

%
%

This trend shows that 89% of this population rarely users the services of akistan Railways,

with 5% people travelling occasionally, 4% frequently and 2% of the people have never

travelled by the train.

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Percentage of People Travelling by


Train
Rarely Ocassionally Frequen ly Never

% %
%

%

The mode of transport normally preferred while travelling on national routes is the airplane

with percentage of 72% whereas 28% of the population prefers to travel by their personal

conveyance. 0% of the people from this sample size wish to take a bus or train.

|ode of Transport that is Prefered


on National Routes
Airlane Car Bus Train

% %

%

%

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In order to find out the degree of brand loyalty the consumers generally have toward the

existing services of akistan Railways, we carried out another survey in which we asked our

prospective consumers about which mode of transport they would prefer travelling on for the

national routes. 62% of the entire population size of the first sample would prefer using the

train whereas 72% population from sample 2 would use the service of the high speed train if

available.

SIEMENS GENE AL SAS IN E MA KE


A survey was also carried out to find level of awareness and willingness of people with

reference to the fact that if Siemens would be a viable option for supervising and implementing

the project. This survey also gave us a good feedback, we found out that Siemens is a brand

well known to a majority of buyers and their services are rated as very good if compared to

that of the Chinese manufacturers by the majority of our consumers; 8% of the population

from sample 1 did not want the project to be handed over to China which is a clear signal to

the fact that they understand that Siemens would be n appropriate option as they provide

quality services. Mence these surveys gave us a go sign to carry on with the plan.

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SEGMENAIN

Segmen a ion

Frequencycofc Tyecofc
IncomecLevel SocialcClass Ocassions
isi Cus omer

SEGMENAIN A ING  ASINS


The customers are also grouped according to different occasions when they get the idea of

visiting their relatives. For example, their sales of the high speed train service would increase

in summers as people with children get the only time for recreation in summers because of the

summer vacations of their children. Further, people from Rawalpindi & Islamabad often visit

Lahore during the Eid holidays and other important occasions.

F EQENY F VISIS F SME S


Customers are also segmented on the basis of the frequency of their visits i.e. the first time

customers, regular customers and potential customers. The high speed train service would

definitely have various set of customers ranging from the everyday commuters to the

occasional customers; a high percentage of potential customers would be the corporate

individuals.
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INME LEVEL
As the rates of the resort are high as compared to the existing hotels in Murree, except

for C Bhurban, therefore only the higher income group can afford their services, Room rates

range from Rs. 4000-6000 per night. Similarly food rates are also high and for the serving of

food in the customer·s room, extra 15% is charged from them.

SIAL LASS
The management of the resort is looking for sophisticated and educated customers in order to

maintain the top-quality standards of environment that the resort is providing. The Service

would target people who want to enjoy their journey in a peaceful & time efficient atmosphere.

Y‘E F SME S
The customers coming to the Motel are mainly divided into two major groups i.e. corporate and

non-corporate customers. Corporate customers are those who come as delegates for

conferences or recreation. And would also include the population from different working

segments of our society, Non-corporate customers include students, families and anyone who

can afford the ticket.

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‘ ‘SE LG AN NAME:


roposed logo and name for bullet train in akistan is BURAQ EX RESS, which means a

fast running horse. This is due to the localized name and religious attachment Muslims have to

BURAQ.

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The transport industry plays a very important role for the economy. For businesses the sector is

important so that goods can be moved from one place to another. For example, the raw materials can be

transported from where they are produced to the factory site where they will be converted into finished

products. Indeed, some businesses such as TCS and CS are responsible to deliver cargo and other

deliverables from one customer to another at the lowest possible time so that the deliverables can be

reached faster. Then there are people who need to travel for different purposes, either for business or

for personal reasons.

For the railway industry, and particularly for the Lahore-Islamabad route, there are various competitors

that are present in the market. It is very important to analyze these competitors and what they are doing

to facilitate the customers in order to come up with a better and more appreciable service. Secondly, as

a high-speed train project requires a huge financial investment in the development of the infrastructure

as well as the cost getting the superior technology, Siemens needs to manage these prospects affectively.

According to a World ank report,

   
          
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Now there are two kinds of competitors that are present in the market. ne is the direct competitor and

the other are indirect competitors. In the transport industry the following will be the direct competitors

of Siemens for specifically the indi-Islamabad route.

I E M‘EI S
Express and Yon-express Trains

At present the trains are being run by akistan Railways under the monitoring of the Ministry of

Railways. assenger traffic accounts for about 50% of the total railway traffic.

There are currently two trains that have the speed such that they are able to cover the indi-Lahore

route in less than 4 hours. These include the following trains

½c ubak ôaftar express: which leaves ‰ahore at 7.45 am and reaches at p2.30 pm

½c Islamabad non-stop: that leaves ‰ahore at 7 am and reaches at pp.05am.

½c The Margalla Express: This leaves at 6 pm and reaches at p0 pm.

It is to be noted that all these fast trains are travelling only at one time from Lahore to Rawalpindi and

in turn one time from Rawalpindi to Lahore. Apart from that there are various other trains that are

being used for passengers to travel from Lahore to Rawalpindi route the journey varies to 5 to 8 hours.
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LAM RE ÎN. RAWAL INDI

Train Name Train Direction Arrival Departure Arrival Departure

Code

Khyber Mail 1 U 9: 0:00 M 10:10:00 : 0:00 AM :55:00

M AM

Tezgam 7 U 2:10:00 M 2:40:00 M 8:20:00 M

Awam Express 1 U 8:00:00 AM 8: 0:00 AM 2:25:00 M 2:50:00

Margala Express 109 U 6:00:00 M 10:00:00

Îaffar Express 9 U 12: 5:00 1:15:00 M 7:15:00 M

Subak Raftar 101 U 7:45:00 AM 12: 0:00

Express M

Night Coach 105 U 12: 0:00 4: 5:00 AM

AM

Islamabad Non- 107 U 7:00:00 AM 11:05:00

Stop AM

Quetta Express 2 U 11:10:00 11:55:00 6: 0:00 M 6:50:00

AM AM M
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Subak Khram 10 U 4: 0:00 M 9:15:00 M

Express

Îinnah Express 47 U :20:00 M :50:00 M 8: 5:00 M

Sir Syed Express 49 U :20:00 M :50:00 M 8: 5:00 M

Nishter Express 51 U :20:00 M :50:00 M 8: 5:00 M

Rawalpindi Express 111 U 1:00:00 M 5:15:00 M

assenger 27 U 11:00:00 7:10:00 AM 7:50:00

M AM

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RAWAL INDI LAM RE ÎN.

Train Name Train Direction Arrival Departure Arrival Departure

Code

Margala Express 110 DN 7:00:00 AM 11:00:00

AM

Khyber Mail 2 DN 1:25:00 AM 1:50:00 AM 8:00:00 AM 8:40:00 AM

Tezgam 8 DN 8:00:00 AM 1:45:00 M 2:15:00 M

Awam Express 14 DN 12:45:00 1:10:00 M 7:00:00 M 7: 0:00 M

Îaffar Express 40 DN 6:00:00 AM 10:50:00 11:20:00

AM AM

Subak Raftar 102 DN 4: 0:00 M 9:20:00 M

Express

Subak Khram 104 DN 7: 0:00 AM 12:15:00

Express M

Night Coach 106 DN 12: 0:00 4: 5:00 AM

AM

Lahore Non-Stop 108 DN 6:00:00 M 10:00:00

Quetta Express 24 DN 10:40:00 11:00:00 5: 5:00 M 6:15:00 M

AM AM
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Îinnah Express 48 DN 2: 0:00 M 6: 5:00 M 7:05:00 M

Sir Syed Express 50 DN 2: 0:00 M 6: 5:00 M 7:05:00 M

Nishter Express 52 DN 2: 0:00 M 6: 5:00 M 7:05:00 M

Rawalpindi 112 DN 1:00:00 M 5:05:00 M

Express

Sialkot Express 172 DN :00:00 M 1:10:00 AM

assenger 28 DN 6:40:00 M 7:20:00 M 4:15:00 AM

The strength of travelling by the trains is the following.

Frequent trips

Currently there are about 16 trains that travel from the Rawalpindi to Lahore journey. This leads to

greater travel options for the customers.

‰ower costs

Compared to other modes of travel for Quality conscious customers, the rail travel provides

comparatively lesser costs for the customers. The parlor cars are having comfortable seats. Secondly, the

Chinese trains are also providing the customers with better services than before, with free lunch boxes

and drinks.
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Miscellaneous

Another advantage specially associated with this type of travel is the washroom facility

available on the train. This aspect is very important for many people when choosing their travel.

Especially for those mothers who have small babies to take care off and certain patients who suffer from

health problems.

Secondly, certain snack items and even meals can also be purchased in the train and some even offer to

sell newspapers and local magazines.

The view also plays a role for many people especially when they travel in the morning time as they are

able to enjoy it.

Trains are more efficient in fuel consumption in per passenger per kilometer travel than in fuel

consumption Well established high speed rail systems in use today are more environmentally friendly

than air or road travel. This is due the following factors

½c lower energy consumption per passenger kilometer

½c reduced land usage for a given capacity compared to motorways

½c displaced usage from more environmentally damaging modes of transport

[eaknesses

The weakness that is associated with the system is lower quality compared to other services such as

Daewoo and Air travel (although it is justified by the price)

Secondly, most of the trains are taking longer time to reach to specific places about 5-6hours on

average. The railway industry in akistan compared to China the locomotives are 1/8 times productive

and 1/ time to that of India .The R has a very low and stagnant market share, carrying less than 10
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percent of passenger traffic and 5 percent of freight.

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According to the statistics put forward by the World Bank, road travel was currently the most

frequent mode of travel being used not only for passenger travel purposes but also to transport goods

from one place to another. Currently road travel in akistan carries about 80% of the total traffic. Due

to developments in the improvement of the infrastructure there has been an increase in transport and

now it is catering to almost 90% of the total passenger traffic and 96% of the Freight traffic which

means that the other modes of travel have very less market share.

National ighway Authority


Like akistan Railways managing the railway sector, the responsibility of building highways and

motorways lies with NMA. The objectives of NMA is the development, management of operations,

maintenance and planning of the particular networks. ver the past NMA has been engaged in the

development of the following programs19:

M-1: Islamabad to eshawar (155 km access-controlled motorway with 6 lanes)

M-2: Lahore to Islamabad ( 67 km access-controlled motorway with 6 lanes)

was completed in November 1997.

M- : indi Bhattian to Faisalabad (5 km access-controlled motorway with 4

Lanes.

M-4: Faisalabad to Multan (200 km access-controlled motorway with 4 lanes)

M-5: Multan to Dera Ghazi Khan (65 km with 4 lanes)

M-6: Dera Ghazi Khan to Ratodero (450 km with 4 lanes)

M-7: Kakkar to Karachi via Dureji ( 0 km with 2 lanes)

M-8: Gwadar to Ratodero (1072 km with 2 lanes)

M-9: Karachi to Myderabad (1 6 km with 6 lanes)

M-10: Karachi Northern Bypass (56 km with 2 lanes)


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SLM: Sialkot Lahore Motorway (100 km with 6 lanes)

NMA is managing % of the total entire road network and about 75% of the country·s road traffic.

As our focus is on the Rawalpindi- Lahore Motorway route, we would focus our attention to the Motor

Way M2. ther projects being carried out by NMA is National Mighway Improvement rogramme

(NMI ) and National Mighway Development Sector Investment rogramme (NMDSI )

LA E  ISLAMAA M WAY M2

The motorway was developed in 1996. The network has basically 6 lanes and provides exits to various

other cities that come between Lahore and Islamabad. The motorway was developed by Daewoo at a

cost of Rs 6.7 billion. The length of the motorway is about 5 km.20

The major passenger travel service is being offered by Daewoo which is availed by the middle and

upper middle class. Mowever other players are also present in the market such as buses of Niazi, New

Khan and Skyways that are being used by the lower class segments.

Apart from the fuel prices that the customers pay while travelling in their own cars, the customers have

to pay toll taxes when they use the motor way (Given below)
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Ýoll Rates for Motorways21

Vehicle Ýype

Car, Îeep, Land Cruiser/ ajero, Suzuki Van/ ick up or Equivalent Details Rs.

15/-

Wagons (upto 12 Seats), ick up all types modified to carry Details Rs.

passengers (Ýoyota Milux single/ double Cabin), Milk Ýrucks Ý- 000 25/-

and equivalent.

Coasters, Mini Buses (upto 24 Seats), 1 -24 seats Coaster Mini Bus Details Rs.

built on Ý- 500 Mazda Chassis (upto 24 seats) and Mini Ýruck / 25/-

Ýanker built on Ý- 500 Mazda

Busses greater than 25 seats Details Rs.

40/-

Rigid Ýrucks including 2 Axle, Axle Ýrucks Details Rs.

50/-

Articulated Ýrucks/Vehicles Details Rs.

100/-

SAMMI AEW S SE VIVE


The most popular transport service provider across the various destinations of akistan is undoubtedly

provided by Daewoo. For the Lahore to Rawalpindi route there are currently travel 5 times daily, with

average seating capacity of about 40 seats. The service is extremely popular for the Lahore ²

Rawalpindi route mainly because of the security it offers along with the good service. SIEMENS

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IMINGS F E‘A  E
As the bus leaves on average after every half an hour it increases the convenience of the

customers. Mostly the buses reach and depart at time but it depends on the traffic in the cities to which

there have been instances when the journey takes about 5 hours than the scheduled time of 4. 0 hours.

E SE VIES F SME S


The customers are offered snacks along with drinks. Furthermore, it has contracts with certain stop

over points along the journey where passengers can use washrooms and get meals. Furthermore they

also provide head phones and have LCDs where movies are played.

Another service that they offer is for those who have to travel to Islamabad. The bus stops over and

moves from the G7 sector of Islamabad and the charges are mere Rs 20.

IKE ‘ IE
The ticket price for the normal bus is about Rs480 for the Lahore Rawalpindi route while the recently

started Royal Decker buses cost about Rs 75022. This is because of more comfortable seats and better

service offered to the customers.

 AWAKS F A  AVEL


Apart from the motorway which has a good infrastructure, the other networks are below standards.

Trucks speed are slower when compared to those in Europe hence it means that they take longer hours

to reach which inturn means that the goods take a very long time to travel from one place to another.

Secondly they are obsolete causing a lot of pollution.


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This pollution also increases when people use their own cars when compared to using other

modes of transport, with the increase in the number of cars travelling and lesser

implementation of environmental standards there has been increased pollution.

Furthermore, construction of roads due to rapid urbanization and growth in population has resulted in

massive destruction of landscapes and trees.

AI  AVEL
akistan has currently about 6 operational airports across the country. IA is the national carrier but

other airlines are also present in the market. There are currently about more private airlines apart from

IA which are Air Blue, Shaheen Airways and Aero Asia. All the airlines are covering the Lahore to

Islamabad route

SAEEN AI WAYS AN AI LE


These two airlines are present in the industry but none is offering their service from Lahore to

Islamabad route. Mence, it is only IA that is travelling on this route which in turn means limited option

for the customers to reach on time.

This is a very interesting fact that we came across with. For time conscious customers the airline

industry is offering limited services and that too it is very expensive.

‘IA
It is currently the only available airline that is catering to the Rawalpindi-Lahore route. It Travels on the

Lahore Islamabad route about 5 times daily, the ticket price is about Rs 7500 but it is subject to change.

The flight time is about 50 min.


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rawbacks
There is still a major potential in akistan for the air travel industry and according to we

sources the CAA should encourage commercialization and increase competition within the industry.

The major drawback compared to other modes of transport is that air travel is extremely expensive. The

tickets for the Islamabad Karachi route is similar to that of Karachi Dubai

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Since road travel accounts for the maximum portion of traffic and hence even earnings, there is

considerable need to develop further the infrastructure to develop the passenger traffic. Recent

programs undertaken by authorities like NMA and NAS AC has resulted in tremendous improvement in

the road travelling sector. The major threat that will be present for the bullet train is the competition

from Daewoo. As mentioned earlier, there is increased customer reliance on the services of Daewoo in

road travel. There are other buses two private and local that travel on the route and competition exists

for those customers who are not price sensitive and like mentioned earlier this is not our target market.

In air travel, competition exists from the only airline that travels in the Lahore-Islamabad route and

that is IA. As the price of the tickets are extremely high and the time also comparable to that will be

provided by the Bullet train, it is going to be advantageous as well.

Coming towards the direct competitors, the akistan Railways although providing frequent travel

options throughout the day and improved services in the future can be a threat for the Bullet train

service. Still it is incomparable in terms of the time that it takes to travel the distance.

When compared to air travel rail schedule fewer weather disruptions, and at times the time can also

become comparable. This is because, for air travel you need to be at the airport at least an hour before

the flight take off, apart from the time taken to travel.

In car travel you can travel any time you want to and reach the exact destination. Rail travel has

specific time and u need to take a taxi to travel from the station to the destination
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Like a road is required for the car to run, proper infrastructure and planning is required for

the train to run. This means that for rail travel a high amount of investment will be required

and profitable returns may not be present in the short term

IME EIN  G LLE  AIN


By reducing the time of travel it will benefit both the businesses and the passengers. For passengers, it

will be possible to travel to places earliest and also at a cheaper cost than a plane. They can avail the

facility to attend business meetings in other cities much more conveniently. For businesses, the freight

can be delivered at a much lesser time therefore orders can be managed and cost effectiveness earned.

It will in turn make the industry more competent.

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Comparison of pollution caused by high-speed railways compared to road and air travel

Research was carried out by that compared the emission of various pollutants in UK in 2001. The

research focused on f main emissions namely M10, MC, and N x and S 2. It was noted that

car transport has very much higher emissions of M10, C , MC, and N x than either rail or air.

Domestic aircraft and cars have similar emissions of S 2, though both lower than rail. Cars have

similar C 2 emissions to domestic aircraft on longer flights, but lower C 2 emissions on shorter trips.

Rail has significantly lower C 2 emissions than either mode.

When compared with the air travel the Carbon Dioxide emission in aircrafts during landing and take-

off is the same regardless of the journey travel, hence it means more emissions in shorter journeys than

longer ones. Domestic aircraft have emissions of 200- 00 gC 2/passenger km compared to around 40

gC 2/passenger km for high-speed rail.

n the other hand, S 2 emissions of high speed rail are greater when compared to the aircraft.

Emissions of S 2 will be greater for aircrafts in shorter journeys than high-speed rail and vice-versa

for longer journeys.2

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24

S ENGS
ime Efficiency ² ur complete journey time would be approximately 1 hr 10 minutes

compared to the 5 hrs taken by any normal train.

Existing Expertise - New trains with Siemens technology rolled out in Mumbai and their

active participation in key international airports being set up or modernized in India

highlights the fact that Siemens has the expertise.

onsumer ‘reference ² According to the customer analysis conducted 88% of the first

sample wanted Siemens to supervise the project whereas 60% of the population of the second

sample also voted n favor of the company; it should also be noted that 8% of the population

insisted that China should not be an option considered by the government for such an

extensive project.

½c Approximately 2.5million travel through train especially after the introduction of

certain reforms by akistan Railways

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½c Facilitating the Business Community by allowing the traders to send cargo in a

short span of time, this will increase the efficiency of the businesses and in turn be

beneficial for the economy as a whole

½c Can provide employment opportunities for the local population

½c Travelling time is reduced

WEAKNESSES
erall cost ² The whole set up would be very expensive and with reference to Chinas

availability as an option, akistan could always give preference to the lowest bidder. The

current challenge that Siemens had faced was because of the fact that China had recently taken

Siemens market share of the Boosters.

No Existing Infrastructure ² The organization would definitely have to start from the

scratch when it comes to the infrastructure as no such project has been earlier undertaken and

implemented apart from the LMTR which would reach into its completion stages by 2015 and

the infrastructure developed by them would be different comparatively in addition to the fact

that the service would be available only within the vicinity of Lahore

½c Migh cost

½c Establishment of a separate network to run the trains

½c Expensive

½c Unstable ‘olitical cenario in the country

½c uicide attacks and killings leading to a threat to security


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$They are getting bigger, better and faster than everµ Aaron Dalton Forbes Traveler,

Nov 15th, 2007

 EAS
½c olitical instability can actually render the project void; for example the bullet train

project initiated during the Nawaz Sharif regime was cancelled as soon as he was taken

over by another rime minister.

½c The current Electricity/Gas crisis has made the life of the entire population miserable,

various small and large businesses have been affected; therefore this energy crisis may

threaten Siemens existing efficient work processes.

½c China could act as a major threat with reference to the bidding price as they would

possible charge the lowest price in case the project reaches the bidding stage.

½c Delay in the project acceptability would bring about a substantial increase in the

overall cost of the project; the current feasibility would no longer be applicable then

and a new report will have to be worked upon from the scratch. For example in the

1990s in the Kalabag Dam project feasibility report, the costs calculated were doubled

in the next 20 years when the project was being critically examined with reference to

the implementation.

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‘‘ NIIES
½c Growing Needs of the economy of akistan in general and the growing

transportation needs of the local population is an opportunity. The existing modes of

transport are not accommodating the whole of population.

½c Time is an environmental factor that can be cashed upon as none of the existing

services have been able to bring a balance in the time and the price of the services

being provided.

½c First mover advantage is going to act as another significant opportunity as Siemens

would be the first international brand to enter akistan with reference to the bullet

train.

½c The news of privatization of akistan Railways has been spreading like fire; Siemens can

take part in the biding process.

½c Due to the pen Track olicy being initiated by the government for akistan, Siemens

can jump in for the partnership in providing these freight services in the country.

½c Investment to prevent the current energy crisis

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Trains are more efficient in fuel consumption in per passenger per kilometer travel than in fuel

consumption Well established high speed rail systems in use today are more environmentally

friendly than air or road travel. This is due the following factors

½c ‰ower energy consumption per passenger kilometer

½c reduced land usage for a given capacity compared to motorways

½c displaced usage from more environmentally damaging modes of transport25

When compared to air travel rail schedule fewer weather disruptions, and at times the time

can also become comparable. This is because, for air travel you need to be at the airport at least

an hour before the flight take off, apart from the time taken to travel.

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S EFFEIVENESS
Keeping the infrastructure costs aside high speed trains are more cost effective than normal

trains because of two reasons:

The staff is usually paid per hour therefore less pay would have to be given out to them. The

revenue is based on the distance traveled, which would in turn increase the revenue to cost

ratio because the customers will have to pay for the distance that they travel, and the reduced

time would in turn mean lesser pay given out to the employees hence the revenue to cost ratio
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will decrease in this regard. Mowever, it should also be noted that the customers will be

paying a higher fare hence expecting good service for which training of the staff

would have to be undertaken to improve the interaction with the customers. This cost would

also be in turn paid off, because revenues as the price of the ticket will be comparatively higher

than when compared to normal trains out of the value that the customers get.

IME EIN
By reducing the time of travel it will benefit both the businesses and the passengers. For

passengers, it will be possible to travel to places earliest and also at a cheaper cost than a plane.

They can avail the facility to attend business meetings in other cities much more conveniently.

For businesses, the freight can be delivered at a much lesser time therefore orders can be

managed and cost effectiveness earned. It will in turn make the industry more competent.

ISAVANAGES
In car travel you can travel any time you want to and reach the exact destination. Rail travel

has specific time and u need to take a taxi to travel from the station to the destination

Like a road is required for the car to run, proper infrastructure and planning is required for

the train to run. This means that for rail travel a high amount of investment will be required

and profitable returns may not be present in the short term.

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olicies of host countries have an important influence on foreign investment decisions. Most

countries can adopt policies of stimulating foreign investment or they can restrict foreign

participation in their economies in various ways. Most country policies and policy

pronouncements affect the perception of $political riskµ by transnational corporations (TNCs)

and thereby the amount of investment of these companies. In addition, host country policies

can be instrumental in channeling investment flows toward sectors considered to be of

particular importance to the country·s development.

akistan was basically an agricultural economy upon its independence in 1947. Its industrial

capacity was negligible for processing locally produced agricultural raw material. This made it

imperative for succeeding governments to improve the country·s manufacturing capacity. In

order to achieve this objective, however, changing types of industrial policies have been

implemented in different times with a changing focus on either the private sector or the public

sector. During the 1960s, government policies were aimed at encouraging the private sector

while during the 1970s; the public sector was given the dominant role. In the 1980s and

1990s, the private sector was again assigned a leading role. Especially during the decade of the

1990s, akistan adopted liberal, market-oriented policies and declared the private sector the

engine of economic growth. Moreover, akistan has also offered an attractive package of

incentives to foreign investors.

The private sector was the main vehicle for industrial investment during the 1950s and the

1960s and the involvement of the public sector was restricted to three out of 27 basic
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industries.5 It was also set that in the event of private capital not forthcoming for the

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development of any particular industry of national importance, the public sector might

set up a limited number of standard units. By the late 1960s the economy was largely

dominated by the private sector in important areas like banking, insurance, certain basic

industries, and international trade in major commodities.6 The services sector was reserved for

local investors. Foreign investment was not allowed in the field of banking, insurance, and

commerce.

n 1 Îanuary 1972, the G issued an Economic Reforms rder taking over the management

of ten major categories of industries,7 commercial banks, development financial institutions,

and insurance companies. In 1975 there was another round of nationalization of small-sized

agro processing units. The sudden shift toward nationalization of private sector industrial units

shattered private investors· confidence. At the same time there was also acceleration in the

direct investment by the public sector in new industries ranging from the basic manufacture of

steel to the production of garments and breads. The status of the public sector as a catalyst and

gap filler in the 1950s and 1960s changed to that of repository of the $commanding heightsµ

of the economy (see Government of akistan 1984). All foreign investment was, however,

exempted from the purview of the nationalization.

After the dismal performance of the industrial sector following the 1972 nationalization, a

change occurred in September 1978 in the government·s approach toward the role of the

public and private sectors. The role of the public sector was restricted to consolidating existing

enterprises, and further investment in this sector was strictly restricted. The role of the public

sector was elaborated in the industrial policy statement enunciated in Îune 1984. The

statement reiterated that the government would continue to pursue a pattern of a mixed

economy, with the private and public sector reinforcing each other. At the same time it
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admitted that the public sector had established its managerial and entrepreneurial foundations

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and was in a position to chart its future course to create a supportive relationship

between the public and private sectors. Industries like steel, fertilizer, cement,

petroleum refining and petrochemicals, and automotive equipment engineering were still in

the realm of the public sector. The private sector was, however, permitted to participate in

these fields as these were not an exclusive preserve of the public sector anymore.

The industrial policy statement of 1984 not only accorded equal importance to the public and

private sectors but also encouraged the private sector to come forward. Mowever, the process

of privatization was not initiated. Mad this been initiated, akistan might have attracted a

considerable amount of foreign direct investment in subsequent periods. The public sector

retained its role in major industrial areas, which obviously discouraged the inflows of FDI. The

procedure for obtaining permission to set up an industry was somewhat restrictive. The

government sanction for some categories of investment was considered essential to ensure that

the major projects of national significance or in need of government·s pricing policy and other

support measures were established with government knowledge and involvement. The

government·s sanction was required for setting up projects in the following categories:

(i) Industries specified for reasons of overcapacity; price regulation; and implementation of a

program of assembly-cum-manufacture, requiring indigenous manufacture of components or

projects of major national importance or for religion, security, or socioeconomic objectives

(ii) rojects involving foreign private investment

(iii) Large projects costing Rs 00 million and above

(iv) rojects requiring cash foreign exchange of more than Rs 50 million equivalents for plant

and machinery
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(v) rojects involving the import of secondhand machinery

(vi) rojects in which more than 60% of the raw material was importable, provided the

value of each import exceeded 20% of the total investment in fixed assets

The industries included in the above categories required the clearance of the Central

Investment romotion Committee (CI C) and the approval of the Federal Government. The

above-mentioned restrictions and the need to obtain permission for setting up an industry in

these areas where applicable to both local and foreign investors. In addition to this, all project

proposals involving foreign investment required government approval and were required to be

filed in the first instance with the Investment romotion Bureau (I B). Foreign private

investment was encouraged in the form of joint equity participation with local investors and in

the areas where advanced technology, managerial and technical skills, and marketing

expertise were involved. Adequate legal framework for foreign investment was provided

through the Foreign rivate Investment ( romotion and rotection) Act 1976. This Act

provided for security against expropriation and adequate compensation for acquisition. The

Act also guaranteed the remittance of profit and capital, remittance of appreciation of capital

investment, and relief from double taxation for countries with which akistan had agreement

on avoidance of double taxation. Foreign investment was also encouraged in industrial projects

involving advanced technology and heavy capital outlay like engineering, basic chemicals,

petrochemicals, electronics, and other capital goods industries.

In order to encourage foreign direct investment in export-oriented industries, an Export

rocessing Zone (E Z) was set up in Karachi. Apart from foreign investors, overseas akistanis

were also encouraged to invest in industrial projects in the E Z on a nonrepatriable investment


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basis. The concessions and facilities offered by the E Z included duty-free imports and exports

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of goods and tax exemptions. verseas akistanis were exempted from disclosing the

origin of the funds for investment and were allowed to bring secondhand machinery

without any surveyor certificate. Despite these incentives, the highly regulated nature of

akistan·s economy proved a deterrent to the inflows of FDI. Specifically, FDI was discouraged

by:

(i) significant public ownership, strict industrial licensing, and price controls by the G ;

(ii) the inefficient financial sector with mostly public ownership, directed credits, and

segmented markets; and

(iii) a noncompetitive and distorting trade regime with import licensing, bans, and high tariffs.

akistan began to implement a more liberal foreign investment policy as part of its overall

economic reform program toward the end of the 1980s. Accordingly, a new industrial policy

package was introduced in 1989 based on the recognition of the primacy of the private sector.

A number of policy and regulatory measures were taken to improve the business environment

in general and attract FDI in particular. A Board of Investment (B I), attached to the rime

Minister's Secretariat, was set up to help generate opportunities for FDI and provide investment

services. A $one-window facilityµ was established to overcome difficulties in setting up new

industries.

The basic rules on foreign investment as stated above were laid down in the Foreign rivate

Investment ( romotion and rotection) Act 1976. riginally, each foreign investment was

subject to separate authorization, but this requirement was eliminated in May 1991. In

general, no special registration was required for FDI, and the same rules and regulations were

applied to FDI as to domestic investors. The requirement for government approval of foreign
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investment was removed with the exception of a few industries such as arms and ammunition,

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security printing, currency and mint, high explosives, radioactive substances, and

alcoholic beverages (in fact, these industries were also closed to domestic private

investors). In all industrial sectors other than those indicated above, not only foreign equity

participation of up to 100% was allowed but also, foreign investors can purchase equity in

existing industrial companies on a repatriable basis. In nonindustrial sectors, foreign

investment was excluded from agricultural land; forestry; irrigation; and real estate including

land, housing, and commercial activities. All investors, whether domestic or foreign, were

required to obtain a No bjection Certificate (N C) from the relevant provincial government

for location of their projects. Thus, the physical location of the investment was effectively

controlled by the provincial governments, which was considered a major bottleneck in speedy

industrialization. At present, an N C is only required for foreign investment in areas that are

in the negative list of the relevant provincial government. There are only a small number of

areas that are on the negative list of the provincial governments.

In the past, investors (domestic and foreign) were not free to negotiate the terms and

conditions of payment of royalty and technical fees suited to the requirements of foreign

collaborators for technology transfer. The government, therefore, streamlined the procedures

and investors are now free to negotiate the terms of conditions suited to them as well as

acceptable to multinationals wishing to transfer the requisite technology. ne of the most

important measures taken recently by the government affecting FDI has been the liberalization

of the foreign exchange regime. Residents and nonresident akistanis and foreigners are now

allowed to bring in, possess, and take out foreign currency, and to open accounts and hold

certificates on foreign currency. Foreigners using foreign exchange have now access to the

capital market. For example, no permission is required to issue shares of akistani companies
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to foreign investors, unless they belong to industries included in the Specified List. To further

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liberalize the foreign exchange regime, the akistani rupee has been made convertible

effective 1 Îuly 1994. The ceiling earlier imposed on contracting foreign loans has been

abolished. ermission of the Federal Government or the SB would not be required regarding

interest rate or payment period of foreign loans not guaranteed by the Government of akistan.

Foreign currency account holders are now also allowed to obtain rupee loans collateralized

against the foreign currency account balance.

The government has also enacted an extensive set of investment incentives including credit

facilities, fiscal incentives, and visa policy. Foreign-controlled manufacturing companies

exporting 50% or more of their production can now borrow working capital without any limit.

ther foreign-controlled manufacturing companies including those not exporting and selling

in the domestic market can borrow rupee loans equal to their equity without prior permission

of the SB . rior permission of SB is also not required for raising domestic credit to meet fixed

investment requirement.

A number of fiscal incentives include a three-year tax holiday to all industries throughout

akistan set up between 1 December 1990 and 0 Îune 1995. Investments in delineated rural

areas, industrial zones, and less developed areas enjoy five and eight years tax holiday

respectively, together with special custom duty and sales tax concessions. The import policy

has also been liberalized considerably, and the maximum tariff rate has been reduced from

225% in 1986/1987 to 45% in 1996/1997. A large number of quantitative restrictions and

nontariff barriers have been removed, and the negative and prohibited lists of imports have

also been reduced (see B I 1995b).11 Export incentives have also been broadened. The highly

cumbersome duty-drawback system is being replaced with a scheme whereby 80% of the

duty-drawback is paid automatically within three days to the firm, and the remaining 20% is
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paid within one week after inquiry. The visa policy of akistan has been modified to make it

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attractive to foreign investors. Foreign investors with substantial investment are

granted years multiple entry visa. There is no restriction/requirement for work

permit for foreign managerial and technical personnel for gainful employment/occupation in

private firms in akistan. Special industrial zones (SIZs) have been set up to attract foreign

investment in export-oriented industries. Apart from foreign investors, akistanis working

abroad are also eligible to invest in SIZs. The government is responsible for providing the

necessary infrastructure and utility services in the SIZs. Investment in SIZs is exempted from

existing labor laws of the country. Mefty fiscal incentives are given to foreign investors in the

SIZs, which include income tax holiday for a period of 10 years provided the plant commences

commercial operation as of 0 Îune 1999; duty-free imports of plant and machinery not

manufactured locally; and tax exemption on capital gains, to the extent of the foreign equity

share, for a period of five years from the inception of the venture.

Foreign inestment in ‘akistan is protected through the onstitution

(Article 24) as well as through specific laws. Section 8 of the rotection of Economic

Reforms Act 1992 provides legal cover to foreign investment in akistan. Beside these statutory

protections, the Multilateral Investment Guarantee Agency (MIGA) provides a means of

obtaining insurance cover against noncommercial risks. akistan is a top beneficiary of the

MIGA investment cover. MIGA has provided akistan with 9.4% of its investment insurance

facilities, the highest among other developing countries. In November 1997, the government

issued the New Investment olicy which includes major policy initiatives. In the past, foreign

investment was restricted to the manufacturing sector. Now foreign investment is allowed in

sectors like agriculture and services, which constitute above three fourths of gross national

product. The main objective of the new policy is to enhance the level of foreign investment in
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the fields of industrial base expansion, infrastructure and software development, electronics,

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engineering, agro-food, value-added textile, tourism, and construction industries.

Foreign investment on a repatriable basis is now also allowed in agriculture, services,

infrastructure, and social sectors, subject to these conditions:

(i) The basis is joint venture (60:40);

(ii) foreign equity will be at least $1 million;

(iii) Foreign companies registered in akistan will be allowed to invest; and

(iv) For social sector and infrastructure projects, joint venture is waived (100% foreign equity

may be allowed).

The manufacturing sector has also been prioritized into four categories:

(i) Value-added or export industries;

(ii) Mi-tech industries;

(iii) riority industries; and

(iv) agro-based industries. The tariff on imported plant, machinery, and equipment ( ME) that

are not manufactured locally for categories (i), (ii), and agriculture is zero while that for

categories (iii),

(iv), and social services will be charged 10%. First year allowance of cost of ME would be

available at 90% for (i) and (ii), at 75% for categories (iii) and (iv), and at 50% for other

industries. Reinvestment allowance for expansion would be allowed at 50% of cost of ME.

Notwithstanding significant deregulation and various incentives/concessions given to foreign


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investors, akistan still faces serious problems as far as implementation of foreign investment

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policies are concerned. There is a strong perception among foreign investors that the

pro-business policies and inducement used to attract prospective new investors are

somehow weak given realities when they actually begin to set up and operate their business in

akistan.

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The success of FDI policies can be judged by the size of the inflows of capital. akistan has been

making efforts to attract FDI and such efforts have been intensified with the advent of

deregulation, privatization, and liberalization policies initiated at the end of the 1980s. The

amount of foreign investment rose from a tiny $10.7 million in 1976/1977 to $1296 million

in 1995/1996, thus growing at the annual compound growth rate of 25.7 percent. Mowever,

it declined to $950 million in 1996/1997. With the beginning of the overall liberalization

program (1991/1992 onwards) the inflow of foreign investment grew at the compound

growth rate of 15.2 percent. Investment inflows in 1995/1996 increased by 9 . % mainly due

to the inflow of investment in power sector.

Although significant by absolute terms, the increase appears trivial when compared to the

relatively more buoyant economies of East and Southeast Asia. While FDI flows to all

developing countries reached $150 billion in 1997, East and Southeast Asia received the bulk

of this share. Total foreign investment consists of direct and portfolio investment. rior to

1991/ 1992, portfolio investment has not only been low but also exhibited a fluctuating trend.

Mowever, with the beginning of liberalization policies in 1991/1992, portfolio investment

crossed the $1.0 billion mark in 1994/1995. This impressive increase does not reflect the true

picture of the trends in portfolio investment witnessed during the post-liberalization period. If
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the $862.2 million sale of akistan Telecommunications Corporation ( TC) vouchers, which

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was a one-time phenomenon, was excluded, the portfolio investment not only declined

to $227.8 million in 1994/1995 but followed an average trend of $215.4 million

during 1991/ 1992 to 1995/1996 as against an average flows of only $9.0 million prior to

reform (1984/ 1985 to 1990/1991).

Foreign participation appears to be the major factor responsible for the increase in portfolio

investment in the 1990s. The decline in international interest rates was also important in

portfolio allocations toward akistani assets. With globalization, numerous international

portfolio funds were created that were invested in emerging capital markets seeking for better

returns. akistan was among the first countries in emerging markets to take measures to open

up its stock markets to foreign investors. Mowever, in relation to the total flows directed to

developing countries, interest in akistan has been very modest. ortfolio inflows, because of

their inherently volatile nature, have proved to be reversible more than other forms in

developing countries. Their potential volatility is great in akistan as well since portfolio

investment in akistan is directed mainly toward short-term and some medium-term public

debt instruments and the stock exchanges.

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akistan·s track record in maintaining consistent economic policies has been poor. The abrupt

changes in policies with a change in government as well as a change in policy within the

tenure of a government have been quite common. ressures to raise revenues (for fiscal

consideration), and other conflicting objectives have generally led to inconsistencies in

investment and industrialization policies, and an ad hoc and changing incentive system.

Revenue measures are not in harmony with the industrial policies.


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akistan·s GD growth rate has consistently averaged 6 percent plus during the last four years

reaching 8.4 percent in the last fiscal year, per capita incomes have shot up to almost US$850,

the incidence of poverty has declined from 4 percent to 25 percent, unemployment rate has

gone down to 6.2 percent and the size of the economy has doubled to $1 0 billion. Large scale

manufacturing has grown in double digits and the cumulative private sector credit by banking

system in last three years was more than $15 billion compared to less than $10 billion in the

previous ten years. These facts, when revealed, come either as shock, surprise or disbelief to

most observers.

n the external front, akistan successfully entered international capital markets in early 2004

and has received enthusiastic response every year since then. Every single sovereign bond issue

was oversubscribed several times and the pricing was better than that of investment grade

countries. This was a country on the verge of default in May 1998 and had been put in

selective default category by S& and Moody·s. Today akistan·s international credit rating is
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Ba2 ² only three notches below investment grade. In 2006 akistan was able to raise more

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than $1 billion in 0 year and 10 year sovereign bonds in the U.S. market at fine

pricing and these bonds were heavily oversubscribed. Trade ² GD ratio has reached

8 percent ² one of the highest in South Asia region. Exports have doubled in U.S. dollar terms

in last four years attaining a level of $18 billion this year.

FDI flows have been rising every year and amounted to more than $ billion or 2. percent of

GD ² the highest in South Asia. rivate capital flows in form of workers· remittances and

other current transfers are touching $9 billion annually. External debt and liabilities as ratio of

GD has declined from almost 52 percent to 28 percent and as a percentage of foreign

exchange earnings down to 125 percent from almost 00 percent six years ago. The myth that

akistan is highly dependent upon official foreign assistance and particularly that from U.S.

can be gauged from the fact that less than 9 percent of country·s foreign exchange income is

derived from official aid. DA per capita is only $8 or 1% of Gross National income. Forex

reserves have risen from $1 billion in 1999-2000 to $1 billion in May 2006 representing

about 6 months of imports.

f course, this exceptional economic performance in a short period of six and a half years has

given rise to some new challenges. Inflation which was subdued at 4 percent or less in the first

four years of economic recovery has accelerated to 8 percent this year. Current account which

was surplus for the last three years has turned into a deficit of almost 4 percent of GD due to

oil price shock and almost 50 percent increase in imports of machinery and equipment.

Income in-equalities have begun to surface as the upper income and middle income groups

have benefited disproportionately from the consumer boom in autos, consumer electronics,

real estate and stock market. Îust to give you one indicator-the domestic production of

automobiles has jumped from 0,000 in 1999-00 to 200,000 cars this year. In addition
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another 50,000 cars are being imported.

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The privatization process was initiated in 1991 under the Nawaz Sharif Government,

continued under the Benazir Government, and further intensified under the Musharraf

Government. Thus, there is a wide political consensus and support for privatization because of

an underlying philosophy that the Government should not be in the business of running

businesses but regulating the markets and laying down policies. akistan·s record on

privatization has been impressive and this has helped in stopping the hemorrhaging of public

finances and easing the pressures on fiscal deficit. akistan·s proceeds from privatization of

banks, telecom, steel and other public enterprises were about $ billion in the last few years.

Financial sector reforms in akistan were also initiated early in the 1990s when new banking

licenses were granted to private domestic banks to set up their shops along with the

nationalized commercial banks and foreign banks. Although these reforms were implemented

with fits and start, they were accelerated in 1997 when the Nawaz Sharif Government brought

in professional managers and boards of directors consisting of reputable persons from the

private sector to manage and oversee the nationalized commercial banks. The Central Bank

was granted autonomy and the control of the Ministry of Finance over banking institutions was

diluted. Excess labor was shed off through voluntary golden hand shake schemes and

unprofitable branches were closed down. Further reforms were undertaken since 1999 when

net non-performing loans of the banking system were brought down to less than percent of

total advances and loans, minimum Capital requirements were raised to $100 million, the

quality of new loans was improved, mergers and consolidation of financial institutions

eliminated a number of weaker players and the range of products and services offered by the

banks was widened. But the most crucial policy action taken by the Government, in my view,

was the privatization of Mabib Bank, United Bank, and Allied Bank ² three large nationalized
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commercial banks of the country. As a result of these reforms, the share of the private sector

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ownership of the banking assets has risen to 80 percent. The banks are highly

profitable and the average lending rates had declined to as low as 5 percent as

automation, on-line banking and multiple channels of delivery improved the efficiency of

services and a healthy competitive environment set in. Agriculture credit, SME financing,

consumer loans and microcredit have become mainstream products of the banking industry

and the borrower base of the banking system has multiplied from 1 million to 4 million

households.

The middle and lower middle class which had been completely shut off from access to banking

services are now enjoying car loans, mortgages, credit cards, consumer durables. Small

farmers are using bank credit for buying chemical fertilizers, certified seeds, insecticides and

weedicides, small implements and hiring tractor services. Small and medium entrepreneurs are

expanding their fabrication and manufacturing capacities and upgrading technology. Landless

labor and poor women in the rural areas are receiving loans for poultry, small livestock,

sewing machines, etc. The main beneficiaries of these reforms are the customers of financial

services although it must be recognized that market determined deposit rates have also

declined significantly. But as the lending rates are surging upwards, deposit rates are also

going to depict an upward movement.

rade liberalization has been undertaken in akistan for the last 15 years and the

maximum tariff rate which was as high as 250- 00 percent has been brought down to 25

percent while the average tariff rate is about 9 percent. Non-tariff barriers and para tariffs

have been eliminated and the culture of providing selective concessions, exemptions and
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privileges to individual firms has given way to an across-the-board uniform rules and

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regulations. rotection to domestic industry is no longer a policy objective as in the

globalized world efficiency can improve only under a competitive environment.

The breaking down of these artificial barriers has led to significant productivity gains and

manufactured exports now account for 90 percent of the total exports. Imports of all kinds of

goods ² capital, consumer, raw materials ² are freely allowed into the country at negligible

import duty rates.

Foreign investment regime in akistan is also highly open and liberal. There are no restrictions

or ceilings or prior approvals required for foreign investors to set up their business in akistan

for any sector of the economy ² agriculture, real estate, retail trade, manufacturing, services,

banking, insurance and other financial services. As long as they bring in their initial foreign

investment and register it with the Central Bank, the foreign investors are free to repatriate

their profits, dividends, royalties, technical fees, debt servicing, etc. through their bankers

without any prior approval. Foreign companies are allowed to raise funds from domestic

sources, including bank loans, without any restrictions. They are treated equally with national

firms in all respect and can bring in and out expatriate staff to run their businesses.

E EGLAIN of oil and gas, telecommunication and civil aviation sectors have also

brought about significant positive results. il and gas exploration activity has stepped up in

recent years and constant discovery and production from new gas fields operated by private

sector companies have added new capacity to meet the growing energy needs of the country.

Independent power producers ² both domestic and foreign private companies ² have played a

critical role in filling in electricity generation requirements of akistan.

Telecommunication has witnessed a boom since the private sector companies were allowed
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licenses to operate cellular phones. ne million new cellular phone connections are being

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added every month and the number of phones has already reached about 27 million or

a penetration rate of almost 20 percent. Long distance international and local loop

monopoly of akistan Telecommunications Corporation has been broken and new licenses

including for wireless local loop have been issued. The customers are reaping rich dividends as

the prices of phone calls ² local, long distance, international ² are currently only a fraction of

the previous rates. ne of the advantages of privatization of the state monopoly, i.e., the TCL

would be felt in form of higher bandwidth penetration that has lagged behind other Asian

countries.

Since the government recently announced the policy of allowing the private operators to fly on

international routes, there has been a big uptake in the aviation business. Domestic airfares

have been cut by IA which had almost a monopoly and seat load factor has reached an all

time high. IA and the private airlines are all scrambling for new planes to meet the pent up

demand for air travel.

The cornerstone of the governance agenda is the devolution plan which transfers powers and

responsibilities, including those related to social services from the federal and provincial

governments to local levels. This plan was put into effect in 2001. The main premise of the

devolution plan is the belief that development effort at the local level should be driven by

priorities set by elected local representatives, as opposed to bureaucrats sitting in provincial

and federal capitals. Devolution of power will thus strengthen governance by increasing

decentralization, transparency, accountability of administrative operations, and people·s

participation in their local affairs. Mowever, in the meanwhile the transition has created its

own set of dislocations and disruptions in the delivery of services that need to be addressed.
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ther essential ingredients for improving economic governance are the separation of

policy and regulatory functions, which were earlier combined within the ministry.

Regulatory agencies have been set up for economic activities such as banking, finance,

aviation, telecommunications, power, oil, gas etc. The regulatory structures are now

independent of the ministry and enjoy judicial powers. The Chairman and Board members

enjoy security of tenure and cannot be arbitrarily removed. They are not answerable to any

executive authority and hold public hearings and consultations with stakeholders.

E NAINAL ANAILIY  EA (NAB) has been functioning quite

effectively for the last five years as the main anti-corruption agency. A large number of high

government officials, politicians and businessmen have been sentenced to prison, subjected to

heavy fines and disqualified from holding public office for twenty-one years on charges of

corruption after conviction in the courts of law. Major loan and tax defaulters were also

investigated, prosecuted and forced to repay their overdue loans and taxes.

Civil service reforms aimed at improving recruitment, training, performance management,

career progression, right sizing of ministries and attached departments, and improving

compensation for government employees are part of the second generation reforms of the

government for building strong institutions in the country. In order to depoliticize recruitment,

promotions and career development, the independence and responsibilities of the Federal

ublic Service Commission (F SC) have been enhanced and is now fully in charge of merit

based recruitment and promotions. The Civil Service Act has been amended to reflect

performance based career progression and would enable the government to retire civil

servants who are inefficient and/or corrupt. The public sector educational training
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infrastructure is also being restructured to strengthen skill based training of civil

servants at all levels.

The reforms in some of the most important federal institutions - the Central Board of Revenue

(CBR), Securities and Exchange Commission (SEC ), the State Bank of akistan (SB ) and

akistan Railways - initiated some years ago - are already beginning to take some hold and

making a difference as far as governance is concerned. Reforms in access to justice will deal

with delays in the provision of justice, case management, automation, and court formation

systems. In addition, human resources, management information systems and the

infrastructure supporting judicial system are being revamped and upgraded. Small Causes

Courts have been established to provide relief to the poor who have small claims.

Despite these reforms, akistan is facing many difficult challenges and will continue to face

new unforeseen challenges. There is no room for complacency. ne fourth of the population

still lives below the poverty line. Muman Development Indicators remain low as almost half of

the population is illiterate, infant and maternal mortality rates are high, access to quality

education and health care particularly by the poor is limited, income and regional inequalities

are widespread, infrastructure shortages and deficiencies persist, skill shortages are taking a

toll in the economy·s productivity while at the same time, there is high unemployment and

underemployment. Most worrying to me is that akistan·s image abroad is quite negative.

Foreigners are reluctant to visit akistan as they perceive the country to be a dangerous place.

The worldwide preoccupation with the large economies of China and India and the ever-

increasing quest to enter these markets is also working to the disadvantage of countries such as

akistan.
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The 'informal economy' refers to modes of production and enterprises that range from small-

scale production units, home-based work in production chains, and self-run micro-enterprises

to bare- minimum economic survival activities such as street vending, rag-picking and

domestic work. These activities remain 'informal' because workers/operators cannot comply

with the established rules and regulations of the formal sector that they find prohibitive and

costly. By virtue of being part of the

$Informalµ economies, a vast majority of workers are excluded from legal and social protection

and from the scope of labor laws. 1 f the total labor force in akistan, 65.8 per cent are

employed in the informal sector compared to 4.2 per cent in the formal sector14. f these,

57 per cent are employees and unpaid family helpers, while 42.2 per cent are self-

employed15 in the informal sector. The majority of the employees in the informal sector are

piece-rate, home based women workers who get extremely low wages and work under

restrictive physical and social environs of their 16 poor habitats, or at small hazardous work

units. Most of the workers are not aware of constitutional and international human and labor

laws and covenants. The in formalization of economy presents perhaps the biggest challenge to

sustainable development. n one hand, it is vibrant sector of the economy, labor-intensive and

responsive to new needs and opportunities. n the other hand, it is largely un-documented,

which distorts both official statistics and existing analyses of the economy's performance. More

importantly, it escapes the government's regulatory network. Labor in the informal sector is

not governed by the various labor laws or regulations on working conditions. This means that

workers have no paid holidays, no job security, no medical cover, no pension or provident
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fund, no limit on the hours worked and no overtime pay.

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SAE F LA NINS:


The prevalent view in some quarters that trade unions are formed to undertake strikes

is based on ignorance of law as well as facts. The positive role of trade unions in industrial

relations has not been realized and reflected. Unions are meant to be democratic institutions

working for the betterment of workers and indirectly for society as a whole.

Trade unions are legal entities. The Constitution of akistan, IL Conventions and UN

Declarations all allow workers the right to form their associations and unions. It is clear that a

number of important issues confront the trade union movement; foremost among these is the

structure of economic activity in the country. The fact that the informal sector extends well

beyond family has an impact on the national economy. There is a trend among employers to

redirect as much work as possible to subcontractors and daily wage earners. This both limits

the application of existing legal welfare provisions and makes it difficult to register unions, as

non-permanent workers can simply be disowned by the employer. This leads to a dichotomy in

the labor force. Within the existing formal sector, unions have a certain degree of collective

bargaining power and have been able to protect the wages and conditions of workers.

ermanent workers also have a large degree of job security. Many traditional labor problems

exist outside the formal sector. The use of child labor is common in the informal sector 18(The

actual total number of working children in akistan is probably 19 somewhere between 2 and

19 million), working conditions are virtually non-regulated and terms of employment are

generally oppressive. Union activity on the whole is remote from the realities facing the

overwhelming majority of the labor force. If unions are to serve their purpose of defending the

interests of the working class as a whole, they need to find ways of addressing the needs of

workers in the informal sector.


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According to the latest labor policy, unveiled in 2002, the right of association was not

extended to agriculture and informal workers, which comprise about 90 per cent of the work

force. ne of the recommendations of akistan Tripartite Labor Conference ( TLC), last

convened in 2001, was extension of the coverage of labor laws to informal sector and home-

based workers, but the new labor policy failed to do that.

The policy aims to regularize the contract system, following that, the number of workers

employed on non-permanent basis will increase. The right to minimum wages, which is a core

labor right, remains highly restricted. According to the minimum wage policy of 2001, the

minimum wage is determined by the number of hours spent on a job. There is no way of

ensuring that home based workers are getting minimum wages working the same number of

hours.

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Global trade and investment patterns are having a dramatic impact on employment relations

and work arrangements around the world. The current state of privatization, foreign

investment and the development of Free Trade Zones unrestrained by labor laws do not add up

to an environment conducive for workers. Workers retrenched by privatization move into the

informal economy when public enterprises are closed or the public sector is downsized. More

and more people are also joining the informal economy to supplement formal sector incomes

with informal earnings in response to inflation or cutbacks in public services. Another

repercussion of globalization is that capital-intensive growth or what some observers call

$jobless growthµ is being pursued by both public and private sector. Furthermore,, $high techµ

growth, tends to create more high-skill service sector jobs than lower-skill manufacturing jobs.

In such contexts, those without the skills to compete for high-tech formal jobs find work or

continue to work in the informal economy.

There may be differences on the precise measurement of poverty but it is widely believed that

the incidence of poverty in akistan has increased during the decade of 1990s. According to

some studies, the caloric-based poverty has in fact doubled from 17.4% in 1987-88 to 2.6%

in 1998-99 21. During the period of 1995 - 2000, economic growth rate declined from the

historical level of 6 per cent to 4 per cent and with population growth rate of almost 2.5 per

cent and more, the increase in per capita incomes was insignificant. The poor performance on

economic growth was accompanied by rising income inequality and high open unemployment

rates. Although the growth rate has improved in the past 5 years (6.4 percent in 200 -4 and

8.4 percent in 2004-5), overall unemployment has gone up. According to the akistan
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Economic Survey of 200 -4, unemployment rate averaged at 5.7 per cent over 1995-

2000, and in 2004, it was 8. percent.

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The project feasibility would definitely depend upon the existing projects which are currently

being taken up by the government of akistan. An example would be The LRMT is a Two-

phase, 97 kilometers long project. A Mong Kong based company called MVA Asia Consultancy

was hired the government of unjab as consultants to prepare the project feasibility. The study

of MVA Asia Consultancy completed 5% of project design and proposed four Rail lines in the

city to share the traffic burden. The proposed capacity of LRMT is going to be able to move

5000 passengers per hour in the city. Funding for the project will be provided by the Asian

Development Bank (ADB). But in this regard our analysis and research indicated that this

project would cost around US $1.7 billion. Financial analysis further ahead indicates the cost

breakup.

In March 2007, unjab Government invited Dr E. Sreedharan who is the managing director of

successfully operating Delhi Metro Rail. After studying the project details Dr Sreedharan has

declared Green Line roject as a viable one.

In 1991 during Nawaz Sharif·s term as prime minister, the feasibility of a light rail transit

system was determined by Îapanese development organization (ÎICA). It had proposed a 1

kilometer long system. The study was reviewed and updated as part of the World Bank funded

$Lahore traffic and transport studiesµ in 199 .

The system·s cost was estimated at about US $400 million, but with better network coverage. In

1995 Îapan proposed financing the original scheme with grants and loans of about US $495

million, but the project could not be implemented due to many reasons.
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Mence keeping in mind previous projects undertaken by government of akistan on

similar pattern can indicate the willingness and acceptability or our proposal.

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arriers to entry
Some of the aspects had been highlighted in the trade policy of akistan of 2006-2007. There

were major barriers that have affected the investments in akistan and are continuing to do so.

½c ‘akistan position on Global Competitiveness scale According to the trade policy of 2006-

2007 akistan was at 95 on global competitiveness out of a total of 125. This index

measures many aspects such as availability of skilled labor, productive workforce,

superior research and development etc. in 2007 however; akistan is not seen in the

World Competitiveness Scoreboard produced by IMD. India ranks 27th on that

½c Increased opportunities in neighboring countries Since there is a lot of opportunity in the

Indian and Chinese markets considering the population size and various other factors,

these two countries have been important attractions in Asia for investment

opportunities

½c ‘olitical uncertainty The biggest barrier is that of political uncertainty and instability

that is providing a threat to not only the foreigners but also the local community in

general. The riots that took place after Benazir's death has shattered the confidence of

investors. Benazir Bhutto·s assassination has cast a huge shadow on the country·s

attractiveness as an investment destination, says Syed Dilawar Abbas, resident

rganization of akistani Entrepreneurs of North America ( EN), Silicon Valley


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akistan has incurred massive trade deficits as the increase in imports in luxury items

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such as imported cars, and cell phones has resulted in increased imports but it was not

matched up with the exports. Economists have been deeply worried as according to

some, akistan did have a golden opportunity to incur global investment when money

was flowing in the country in the form of for example foreign direct investment but this

option was not cashed upon successfully. First the emergency riots took place and later

Benazir's death that decreased the confidence of the business investors. According to the

Îan 1, 2008 The News edition 59 branches of different banks had been ransacked,

furthermore many industries were effected such as the Bake arlor Factory and Steel

Mills in Karachi, destruction of railways etc. it was a pity that even the local property

was not saved. The economic managers of akistan compare its economic growth with

China and India but they conveniently ignore the fact that these countries have

cushioned their currencies against devaluation by amassing foreign exchange reserves

equivalent to over a year of their import bill. The above factor hence leads to major

security concerns where nothing is termed as safe.

½c ‰ack of productive capacity because of lesser availability of technology and investment in

plant and machinery. Because of the tax treatment offered to other type of investments

such as bonds and shares, there was a transfer from industrial to non-industrial sectors.

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The cost of the project would mainly include cost of the track, cost of the trains and land acquisition

cost. Since our company has already done projects very similar to this current project so the cost

estimates for the initial feasibility were easy to make.

The estimated cost and its breakup are given as;

Cost of the track $1.5 billion

Cost of the trains $0.18 billion

Total Cost $1.68 billion

The operational cost of the project after its beginning would be

Cost of Train Drivers & staff

Type Salary Cost per person Total Employees Total Cost

/ year

Train Drivers $12000 6 $72, 000

Melpers on Duty $5000 6 $ 0, 000 = $ 102,000

Finance Department / Salaries

Type Salary Cost per person Total Employees Total Cost

/ year

Senior Manager Finance $50000 1 $50000


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Asst manager finance $16000 $48000

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Compliance officer $ 0000 1 $ 0000

Internal Auditor $20000 2 $40000 = $168,000

Marketing Department

Type Salary Cost per person Total Employees Total Cost

/ year

Senior Manager $ 5000 1 $ 5000

Marketing

Asst Marketing $12000 $ 6000

Manager

Relationship Manager $10000 1 $10000

Manager Sales $10000 2 $20000 = $110,000

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MR/Admin

Type Salary Cost per person Total Employees Total Cost

/ year

Country manager $100,000 1 $100,000

Company Secretary $14000 1 $14000

Senior Manager MR $ 0000 1 $ 0000

Asst Manager MR $10000 2 $20000 = $164,000

Technical and Maintenance (T&M)

Type Salary Cost per person Total Employees Total Cost

/ year

Chief Engineer $80,000 1 $80,000

Manager perations $40,000 4 $160,000

Asst Manager $16000 6 $96,000

perations

Maintenance fficer $5000 15 $75000 = $411,000

T TAL C ST = $ 955,000

Electricity cost of trains:

The government of akistan would provide us with a 25000KV dedicated line, which would cost us

around $1.5million per year.


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GVE NMEN INVLVEMEN:
The project is being carried out by the Government of unjab with funding from Asian

Development Bank; we believe unjab·s rovincial Assembly needs to pass some basic

regulation for providing legal cover on who is going to implement this project so as to avoid

future conflicts. therwise if the current government changes hands the project may die too.

rovincial legislature should do law making to give this project to either a subsidiary dept of

provincial government R a private company or make law for a brand new "mass transit

authority" for the city.

FNING/ INVESMEN:
As to funding, 60% of the project

cost is borne by the ABN Amro,

CitiGroup and MSBC. It is a

subsidized loan, with a 10year

moratorium on payments. 15% of

the cost would be borne by the

federal government. And 15% by the government of unjab (partly as cash and partly as land

transferred to Buraq Express roject (BE ) for building its facilities).

The rest is generated by the BE through property development (and is in fact an indirect

subsidy from the Government of unjab, since it has provided high value land to BE for use

for property development)


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‘akistan ailway to be Made orporation


The government has decided to restructure akistan Railways ( R) into a public sector

corporation in the process of developing a commercial approach and introducing professional

management and private investment.

The restructuring will be part of a major reform exercise to revitalize akistan Railways to

enable it to play its due role within the transport sector and in the economic and social

development of the country, the sources said.

As per the decision, akistan Railways Corporation will focus on core business of rail services,

while the non-core business entities such as factories, schools, hospitals and marketing of land

assets will be managed through subsidiary public limited companies which would function

under the administrative control of the Ministry of Railways through a holding company.

The manufacturing units of akistan Railways The Carriage Factory, Islamabad; Locomotive

Factory in Risalpur; and Concrete Sleeper factories each at Sukkur, Khanewal and Kohat , It

Will be transformed into separate companies under the company laws of the country.

The sleeper factory at Kotri will be leased out to a private sector company. It has also been

planned to lease out more factories to the private sector; however, at least one factory will

remain with akistan Railways which will be converted into a company to regulate price and

ensure required supply of sleepers. Restructuring of akistan Railways was initiated during
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1990s for which consultants were appointed for valuation of assets and liabilities of each of

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the factories. Mowever, the government initiated a fresh restructuring process and

conducted a financial study through consultants which among other things valued the

assets and liabilities of the Carriage Factory Islamabad, Locomotive Factory at Risalpur and

concrete sleeper factories.

The reforms exercise would facilitate the government to fulfill its objective to offload railway

budget from the non- core activities, and would facilitate manufacturing units to have their

autonomous entities for seeking business from the private enterprises; and prepare corporate

plans and feasibility for their future operations and implementation strategy.

All manufacturing units will follow a policy for developing indigenous capabilities of the new

companies to design, manufacture coaches, locomotives and sleepers by developing research

and development activity, design centre, human and capital formation to lessen dependence on

foreign manufactures and develop potential to compete in foreign markets.

Iftikhar A. Khan adds: National Assembly was informed on Friday that the government had a

plan to launch Mass Transit Train service between the twin cities of Rawalpindi and Islamabad.

In a written reply to a question during the question hour, Federal Minister for Railways Sheikh

Rashid Ahmad said Expression of Interest (E I) along with terms of references for conducting

feasibility study of the project would be advertised by his ministry after receiving no objection

certificates from the unjab government and the Capital Development Authority (CDA).

Answering another question, he said the railways ministry earned over Rs11 billion through

the passenger trains during year 2005-2006.Me said various steps had been taken to improve

and modernize the railway service. Me said home-delivery of tickets had been introduced in
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Rawalpindi, Islamabad, Lahore, Faisalabad and Karachi.

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Me said 25 reservation offices had been computerized and 19 others would shortly be

automated. Air conditioned dining cars with sitting area has been introduced. New and

refurbished coaches have been introduced on passenger trains. Additional coaches are attached

with trains during summer and winter vacations.

Me said nine new inter-city and long-lead trains had been introduced during the year 2006-07

with better facilities. Me said filtration plants to provide clean drinking water to passengers had

been installed at major railway stations.

Last updated: 2007-06- 0

http://www.pakistan.gov.pk/ministries/ContentInfo.jsp?MinID=26&c ath= 26_ 45&Conte

ntID=5755

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Spain invited to bid for high

speed train in akistan

ISLAMABAD: akistan will

introduce a high-speed train

between Rawalpindi and Lahore

during one year that is estimated to

run at a speed of 250 to 00

kilometers per hour, said Sheikh

Rashid Ahmed, Minister for

Railways, while talking to the Spanish Ambassador Îose Maria Robles who called on him here

on Monday. Me invited Spanish firms to participate in the feasibility and later on the

construction of the high-speed track, the first ever adventure in South Asia. The akistan

Railways will start metro service in eight major cities of akistan having population over 2

million, he said, adding the feasibility studies in Karachi, Lahore and Rawalpindi and

Islamabad have been initiated and are expected to be finalized within six-months. Me said

Spain which has a rich experience in metro-service is encouraged to join akistan Railways in

an independent capacity or joint ventures in metro service, akistan Railway was keenly

interested to avail the modern technology of Spain in terms of locomotives, signal system,

passenger and freight coaches and the laying of rail tracks in order to bring an overall

improvement in the railway network and operations, he said. The execution of work on

doubling the rail track on Khanewal-Lahore 270 kilometers section has been started, which

will be completed during one year, he said, adding the completion of the project will also bring

a revolutionary change in the culture of akistan Railways not by improving train timings but
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also by passengers' dependency. Special attention is being focused on freight service, being

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major source of earning for the railways, he said. resently, 900 freight coaches are

plying on tracks and we have fixed the target of increasing the number to 1,000, while

freight trains will be increased to 14 from the present ten," he added. Me asked Spain to

cooperate in manufacturing of locomotives, passenger and freight coaches.

http://www.thepost.com.pk/Arc_CorpNews.aspx?dtlid=6 091&catid=8&date=10/10/2006

&fcatid=14

Ministry allows Mobilink to install C s at railway stations

ISLAMABAD, Dec 15 (A ): Caretaker Minister for Railways Mansoor Tariq here on Saturday

said that akistan Railways has allowed Mobilink to operate and install C facility at railway

stations across the country on urgent basis. The Minister said, $We are taking this initiative on

a number of complaints received from the rail passengers during the visits to various railway

stations and divisionsµ.

Mansoor Tariq said that taking serious note of the absence of this necessary facility at the

railway stations, Mobilink has been allowed to install C s immediately.

Me said that it was unjustified to deprive over 80 million passengers and their relatives who

visit railway stations throughout the year, of this facility which makes them communicate on

cheaper rates.

The mobile C s would also be introduced in near future enabling rail passengers to be in

contact with their families while traveling, he said.


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Mansoor Tariq said that the government has offered partnership to private sector, as it

brings investment and create job opportunities.

akistan Railways would also engage private sector to invest in all sectors of Railways

including

DAWN NEWS ² Delegation from France

KARACMI, April 11: A high-powered trade delegation from France is arriving on Wednesday to

enter into negotiations with various government departments and agencies for the

development and investment in the areas of desalination, sewage treatment plants and mass

transit system.

During its two-day stay the 25-member trade delegation from French Business Confederation

will first hold high-profile meetings in Islamabad and will reach Karachi on Thursday.

The delegation, headed by Vinci Construction Chairman hilippe Ratynski, will also meet City

Nazim Naimatullah Khan because French company - Sogelberg Ingenerates - which made first

ever feasibility report on Karachi's Mass Transit System is also included in the delegation.

akistan France Business Alliance resident Shabir Ahmed briefing the newsmen at French

Consulate's Trade ffice said that the French delegation would hold meetings with rime
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Minister Shaukat Aziz, ministers, World Bank and Asian Development Bank representatives in

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Islamabad.

Me said during its visit to Karachi the delegation would hold meetings F CCI members for

finding out ways and means for enhancing trade between the two countries. Me disclosed that

the delegation members would also hold meetings with Karachi ort and Defense Mousing

Authority for desalination plants.

Besides, the Karachi Water and Sewerage Board (KWSB) is also expected to hold a meeting

with the French team in connection with sewage treatment plants and desalination plants, he

added. The French trade mission comprises heavy machinery, aviation and pharmaceutical

manufacturers, heavy construction, aviation, electronics, water technology and desalination,

power, transport, marine, and telecommunication.

http://www.dawn.com/2005/04/12/ebr7.htm

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DIRECT RATE F LANNING AND RIVATIZATI N

MINISTRY F RAILWAYS ISLAMABAD

akistan Railways has already launched modernization with rehabilitation and improvement

plan both for its infrastructure and rolling stock including prime mover since 2001-2002. The

ongoing schemes worth over Rs. 0 billion are progressing satisfactorily and have brought in

radical improvement in the overall efficiency and performance of the system. During the

current financial year the Railway Revenue generation target has been increased from Rs. 14

billion to Rs. 18 billion and it is planned to achieve zero operational deficit during the current

year by effective planning and financial management on latest technique. The performance

during the mid review i.e. first six month shows the operational surplus of Rs. 927 million

against the target for the period.

akistan Railways plans to achieve a stage of net profit from the year 2007 and accordingly a

number of targets have been set out by the Government for akistan for achievement by 2007

and onward up to 2010. This target include increase in the sectional speed on Karachi ²

Lalamusa main line section to 140 KM M, dualization in the missing link of track on the main

line, introduction of modern and latest version signaling system, procurement of diesel and

electric locomotives as well as high capacity/ high speed freight wagon and passenger coaches

beside improvement and provision of connectivity to Iran, India, upcoming Gwadar ort to

Afghanistan and onward up to Turkmenistan

To achieve the above targets number of developmental schemes have been proposed in the mid

term plan 2005-10 which have in principally been agreed/ approved and hopefully would be

reflected in the approved mid term plan before the end of the financial year 2004-05. The
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schemes are indicated hereafter:-

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akistan Railways Developmental lans 2005-10 (Mid Term lan)

Estimated Cost

Rs. Billion

i) Up gradation and improvement of track from Khanpur to .50

Lalamusa

ii) Dualization of Track from Khanewal to Raiwind and Shahdara to 7.00

Lalamusa.

iii) Setting up of a railway yard and railway linkage from Gwadar 2.50

port to container yard.

iv) Rail link from Gwadar ort to existing rail link at Ahmad wall on 12.00

Quetta Taftan section.

v) Up-gradation of Rohri ² Quetta ² Taftan section 15.00

vi) rovision of Railway link on remaining portion of right bank of 6.00

Indus for connectivity upto eshawar via Kohat

vii) Rail link from Quetta ² Bostan ² Zhob to D.I. Khan for provision 6.00

of direct connectivity from Baluchistan to NWF .

viii) Upgradation of Mirpur Khas ² Khokhrapar section from meter 1.8

gauge to broad gauge upto international boarder.

ix) Feasibility study for provision of rail link from Rawalpindi to 0.1

Muzaffarabad AÎK

x) Feasibility Study for provision of rail link from Dina to Mirpur 0.05
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AÎK.

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xi) rocurement/ manufacture and assembling of 100 locomotives 16.0

(75 diesel and 25 electric).

xii) rocurement/ manufacturing and assembly of 1000 freight 4.8

wagons.

xiii) rocurement/ manufacturing and assembly of 100 passenger 4.10

coaches.

xiv) Electrification of Lahore ² Khanewal double line section with 5.60

rehabilitation of existing single line Lahore ² Khanewal section

(285 Kms). And extension upto Samasatta (16 Kms).

xv) rovision of road over bridge at Chowrangi Chowk Export 0.125

rocessing Zone Karachi. (50% of the cost is to be borne by E Z).

xvi) Improvement and rehabilitation of old and obsolete signalling 15.00

system on Karachi ² eshawar section in phases.

xvii) ther minor projects. 1.00

xviii) For completion of on going schemes. 2 .00

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Railways Ministry trying to improve train food

By Hassan li

LH RE: akistan Railways has decided to contact owners of renowned restaurants to serve

food on major trains at subsidized rates and has sent a proposal in this regard to the rime

Minister·s secretariat for approval, Daily Times learnt on Friday. akistan Railways ( R)

sources said that the ministry of railways made this decision after receiving numerous

complaints from passengers about the unhygienic and substandard quality of food served on

trains.

Daily Times also learnt that the federal minister for railways, Sheikh Rashid hmed, has

already contacted some well-known restaurants and has asked them to submit proposals along

with subsidized price lists of food items. akistan Railways dvisory and Consultancy Services

( RCS) is currently responsible for managing food services on almost all major trains. Sources

said Railways authorities are not satisfied and have warned RCS several times that if they do

not improve the standard of food and service R would award the tender to restaurants or

caterers. The ministry has now proposed that RCS will handle the catering but would get the

foodstuff from elsewhere.

R also wants to get rid of the dinning car, infamous for its unhygienic conditions and

substandard food, and the authorities are said to be taking steps towards this end, sources said.

Railways general manager (GM) operations told Daily Times that the ministry has submitted

proposals for serving better quality food not just on trains but also at major railway stations.
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Îoint Director RCS Mirza Masood said RCS has been providing $best foodstuff and

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services to the passengersµ. Me said he could not understand why the ministry has

submitted such proposals as RACS is a subsidiary of R and has been operating

according to the will of railways authorities.

Saturday, Îune 0, 2007

Minutes of the meeting on RBMTS and NAMTA


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A meeting was held at the Ministry of Railways (M R) on 7.2.2007 to discuss the

proposed National Mass Transit Authority (NAMTA) and development of Rail Based

Mass Transit Systems (RBMTS) for major cities of the country. The meeting was chaired by

Federal Minister for Railways· besides Secretary/Chairman Railways, representatives from all

the four provincial Governments, CDA, Ministries of Communications, Finance, lanning &

Development, Railways and City Nazims were present? (List of participants enclosed).

.The Federal Minister for Railways introduced the participants to the proposed National Mass

Transit Authority. Me stated that the rime Minister had approved the establishment of NAMTA

and had also approved that feasibility studies be initiated forthwith even before the

establishment of NAMTA.

The Secretary Railways emphasized at the outset that the objective of NAMTA was to provide a

forum for facilitating the provincial governments/city governments in developing rail based

mass transit system for their cities and also to act as a Regulatory Authority for such systems.

The Federal Government had no intention of intruding into the sphere of urban transport

which was the jurisdiction of the rovinces. Mowever, since the development of such highly

technical and costly systems involved technical assistance as well as heavy ?financing facility

from donors/creditors, the Federal Government/ akistan Railways was in a suitable position to

provide support in that respect. Moreover, as a watchdog NAMTA will see that proper

standards/specifications and technology are adopted not only to ensure safety but also that the

projects are sustainable

The Secretary Railways emphasized at the outset that the objective of NAMTA was to provide a

forum for facilitating the provincial governments/city governments in developing rail based
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mass transit system for their cities and also to act as a Regulatory Authority for such systems.

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The Federal Government had no intention of intruding into the sphere of urban

transport which was the jurisdiction of the rovinces. Mowever, since the development

of such highly technical and costly systems involved technical assistance as well as heavy

financing facility from donors/creditors, the Federal Government/ akistan Railways was in a

suitable position to provide support in that respect. Moreover, as a watchdog NAMTA will see

that proper standards/specifications and technology are adopted not only to ensure safety but

also that the projects are sustainable.

NAMTA will leave it to the discretion of rovincial/District Governments to conduct feasibility

studies, plan, execute, operate and maintains such systems but where any rovince/City

requests it to be handled by NAMTA, it will do so.? In order to save time it would be advisable

for city/provincial Governments to get feasibility studies initiated through NAMTA as has been

requested by the NWF , Sind and Baluchistan Governments.

A presentation was made by Mr. Imtiaz Ahmad, Secretary Railway Board to highlight the

urgent need of developing RBMTS for the eight major cities and presented?? Various models of

Metro/suburban rail transport in Bangkok, Delhi, Singapore and Kualalampur based on B T,

ublic- rivate artnership and State ownership. It was pointed out that experience showed that

B T projects were not very successful while the models of public private partnership or partial

State management were feasible options.

Copies of the proposed draft legislation which requires considerable amendments for the

establishment of NAMTA were also circulated among the participants.

After the presentation, open discussion was made on the draft legislation and the role of
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NAMTA. The meeting was informed that since the subject of urban transport was listed neither

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in the Federal legislative list nor in the concurrent list of the Constitution of 197 ,

whereas the subject of Railways was listed in the Federal legislative list, the matter will

be taken to the CCI and its concurrence will be obtained before the proposed legislation was

sent to the Cabinet for approval and then to the arliament for enactment. The CCI is the

appropriate forum where the rovinces can register their opinion. Mowever, before going to

CCI, the bill will be redrafted in the light of suggestion/views of all the stake holders.

The participants were therefore, requested to send their comments on the bill within two

weeks and also confirm their willingness for conducting of feasibility studies by the

M R/NAMTA for RBMTS for their cities.

Nazim eshawar stated that there was a lot of congestion in the city of eshawar and provision

of Rail Based Mass Transit System is required for the city. Me desired that the feasibility study

for the provision of Mass Transit System for the city be carried out by NAMTA.

Nazim Quetta explained that due to rapid urbanization in the city the vehicular traffic on the

road had increased manifold during the recent years and posing problems for the smooth

movement of traffic. Me added that a meeting for the provision of Rail Based Mass Transit

System was convened by the &D Department of Government of Baluchistan on 16th Îanuary at

Quetta.

Member Technical CDA stated that Expression of Interest for the provision of Rail Based Mass

Transit System in the twin cities of Rawalpindi-Islamabad had already been invited. Me further

stated that besides Rawalpindi, Islamabad also experienced traffic congestion. Mence there was

need of introducing Rail Based Mass Transit System. Me stated that CDA will have no objection
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if the project was taken over by NAMTA but rovincial Govt. may be consulted.

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Chief Engineer, Traffic Engineering Bureau, Lahore desired that standards for the

construction of Rail Based Mass Transit System should be laid down by NAMTA.

Consultant KCR/NAMTA explained that the specifications for the construction of Rail system,

safety parameters, etc, already exist in the codes and manuals of akistan Railways and they

will be amended/modified to meet with any changes and requirements of Rail Based Mass

Transit System.

Secretary Transport unjab informed that Feasibility Study for the provision of Rapid Mass

Transit System in Lahore from Ferozepur Road (Mamza Town) to Shahdara had already been

completed, identifying an estimated cost of US$ 2.5 Billion for the project.? Detail design is

being carried out. Me further stated that since Government of unjab has already undertaken

the provision of Rail Based Mass Transit System in Lahore, there was no need of NAMTA to get

involved in construction or feasibility study which should be left to District/City/ rovincial

Government. NAMTA should only act as umbrella/Regulator.? This view was acceded to so far

as unjab was concerned. Mowever, the Minister and Chairman Railways stated that

M R/NAMTA will follow the road map set for itself by the unjab Government. Nevertheless it

will still act as safety Regulator. Moreover, the rovincial viewpoint will be considered in

CCI.The Chair observed that the bill for the establishment of NAMTA will be presented to CCI

and at that forum of way provisions in the bill. It was explained that the bill was a proposed

draft and all stake holders should give their viewpoints which will be accommodated. NAMTA

had no interest in getting involved in issues concerning the rovinces.

The Executive Director of I DF (Infrastructure rojects Development Facility) of the Ministry of

Finance extended assistance of I DF which was meant to arrange finances for mega projects,
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besides funding feasibility studies and transaction advice. Mowever, before financing

structural support should be in place.

The following decisions were taken in the meeting:

01) The rovinces will furnish their comments / observations on the bill of NAMTA with in 15

(fifteen) days.

02) The bill for NAMTA will be amended modified to accommodate the comments of provinces

and will be furnished to CCI for consideration and approval.

0 ) NAMTA will conduct the feasibility studies funded by Federal Government /donor

agencies in the major cities of country on the advice and consent of rovincial Government(s).

The meeting ended with vote of thanks to the chair.

Last updated: 2007-04-25

AKISTAN TIMES
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ISLAMABAD: akistan Railways would engage private partnership to invest in freight

operations to extract more revenues and bring efficiency in freight logistics, said

caretaker Minister for Railways Mansoor Tariq. Taking to a delegation of National Logistic Cell

(NLC) and a Dubai based business group, he said that NLC in joint collaboration with the

Dubai based group has offered akistan Railways to operate their own container coaches

between Karachi and Lahore in cargo operations.

The Minister urged the delegation to avail the pen Track olicy initiated by akistan Railways

where the private parties can operate their own rolling stock while paying track access charges

to Railways. Me also pushed the delegation for getting these container wagons manufactured at

akistan Carriage Factory, Islamabad and Mughalpora Workshop, Lahore. This would not only

save the foreign exchange but also provide financial gains to Railways which is already

involved in manufacturing of such wagons at international standards, the Minister said.

Me said that introduction of private partnership into the freight logistics, akistan Railways

would be able to bring efficiency and promptness in such business activities. As the economy

has grown tremendously over the last decade due to consistent and business friendly policies of

the government, there is dire need to expand this network of freight handling, he added.

Me said that despite making holistic efforts by akistan Railways over the last few years, it

could manage to handle only four percent of the total freight business activity. The scope is

tremendous and opportunities for growth are unlimited as akistan is becoming a business hub

between Europe, Central and Middle East in the coming years, he said. This volume of business

can be doubled in no time as there is great demand from the business community of akistan to

increase the no of fast cargo wagons from Karachi downwards, he added.


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The Minister said that a number of steps have recently been taken to improve the

performance of freight segment in akistan Railways. Migh capacity express container

trains have been introduced, which operates daily between Karachi and Lahore.-SANA

osted on December 8, 2007 in ak Affairs

Bullet train plan gets under way


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ISLAMABAD, Feb 10: The bullet train plan of akistan Railways kicked off on Saturday

when a consortium of three countries was awarded contract to undertake feasibility

study of the project, which would make akistan a rail-friendly country.

By initiating the feasibility study, akistan has thus become the first country in South Asia to

take the initiative of bullet train which is very much a pioneering train with a very high speed

record.

Under the agreement signed in Islamabad, ¶MR Consult· will complete the feasibility study at a

total cost of Rs2 .97 million, and submit it to akistan Railways in ctober this year.

olitically, the month of ctober will be crucial when preparations for general elections and

the election of the president will be on top gear.

The ¶MR Consult· is composed of Austria GE Consult; Typsa of Spain and Myco and Survey

( vt) Ltd of akistan.

Federal Minister for Railways Sheikh Rashid Ahmad, who was present at the signing ceremony,

said the bullet train would cover the distance between Rawalpindi and Lahore in only 75

minutes.

The major elements of the feasibility study would be to work out the shortest possible distance,

fare regime and timeframe to recover the investment. When the dream would become a

reality, people would have a fair choice of traveling between Rawalpindi and Lahore section by

train or by air but this would depend on the fare.


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The present distance of 288km between Rawalpindi and Lahore will be further

reduced with the realignment of the track by removing 55 curves between Sohawa and

Dina. But for the bullet train, it has been proposed to lay double track to be covered on both

sides with wall in city limits and fences in unpopulated areas.

The bullet train could be thought of as the world·s first high speed train. Services started in

1964 with speeds at 210km/h or 1 1mph, the fastest trains went at the time, and many

countries, including the United States still have no trains running at this speed. At the time the

concept of $high speedµ was not really established as it is now.

Indeed many say it was the success of the bullet train which led to Europe taking interest in

making trains go fast. Since then the trains have been going faster and faster.

February 11, 2007

Some of the facts n figures

½c Companies from eight countries have expressed interest in laying a bullet-train track

from Lahore to Rawalpindi and 51 companies have shown interest in running private

trains. (US, Sweden, France, Spain, China, Belgium and Germany)

http://www.dailytimes.com.pk/default.asp?page=2006%5C11%5C08%5Cstory_8-11-

2006_pg1 _

½c As many as 00 coaches will be imported, he said, and 700 will be manufactured in

akistan. n his visit to Ukraine, he said that a Ukraine railway team would visit

akistan to launch joint ventures with akistan Railways.


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½c ISLAMABAD, Feb 10 - Under the agreement signed in Islamabad, ¶MR Consult·

will complete the feasibility study at a total cost of Rs2 .97 million, and submit it to

akistan Railways in ctober this year. olitically, the month of ctober will be crucial

when preparations for general elections and the election of the president will be on top

gear. The ¶MR Consult· is composed of Austria GE Consult; Typsa of Spain and Myco

and Survey ( vt) Ltd of akistan.http://www.dawn.com/2007/02/11/nat8.htm

Data from Year Book

LANT & EQUI MENT UNIT 2004-2005 2005-2006

Route - Kilometers Kms. 7,791 7,791

Track - Kilometers Kms 11,515 11,515

Locomotives No. 557 544

Coaching Vehicles No. 1,604 1,66


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ther Coaching Vehicles No. 214 241

Freight Wagons No. 21,556 20,809

Railway Stations No. 626 626

ERATI NS UNIT 2004-2005 2005-2006

assenger, Mixed & other Coaching Trains


No 82,576 86,077
Run.

Train Kilometers, assenger Mixed and other


Thousand 1,119 1,497
Coaching.

Coaching Vehicle-kilometers Thousand 591, 97 581,288

Freight Train Run No 18,24 16,244

Freight Train-Kilometers Thousand 6,640 6,567

Freight Wagon-Kilometres (Freight & Mixed


Thousand 51,514 50,107
Trains)

ther Coaching Freight Tonne-Kilometres. Thousand 518,156 585,781

Volume of Traffic UNIT 2004-2005 2005-2006

assengers Carried Thousand 78,179 81,428

assengers kilometers Thousand 24,2 7,796 25,621,228


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Tonnes of Freight Carried Thousand 6410 60,27

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Tonne - Kilometers Thousand 5,01 ,540 5,906,847

Tonne - Kilometers Freight & Coaching


Thousand 5,5 1,697 591,688
Combined.

Freight Wagons Loaded No 20,001 298,875

FUEL C NSUM TI N UNIT 2004-2005 2005-2006

Furnace il Tonnes 2,985 ,047

M.S.D. il Tonnes 154,650 145, 09

Electric Energy KWM 11,924,746 11,7 6,977

Coal Tonnes 105.88 4 .650

EM L YMENT & WAGES UNIT 2004-2005 2005-2006

ersons Employed No 86,807 86,096

Cost f Employees Thousand 6, 46,24 7,646,562

ension ayment Thousand 2,944,84 ,11 ,6 7

FINANCIAL RESULTS UNIT 2004-2005 2005-2006

Gross Earnings Thousand 17,827,467 18,04 ,641

Total rdinary Working Expenses Thousand 14,158,740 15,868,276


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perating Ratio ercent 79.42 87.9

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SYE SMAN WAZI
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Ênternational Ênvestor Relations,

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