Pakistan, Russia ink agreement to upgrade railway sector

ISLAMABAD: Pakistan and Russia signed a Memorandum of Understanding (MoU) on Cooperation in Railway sector on Friday on the sidelines of 27th St. Petersburg International Economic Forum (SPIEF).

The Memorandum of Understanding aims to explore opportunities for implementing railway upgrade projects and other initiatives within this crucial sector.

According to a press release issued by the Ministry of Railways, the agreement also establishes a framework for potential future collaboration with relevant companies operating in this sector.

Furthermore, it seeks to enhance and streamline international cargo transport.

The MoU was signed by Ambassador Muhammad Khalid Jamali from Pakistan side and Deputy Transport Minister  D.S. Zverev from the Russia side.

It is pertinent to mention here that Pakistan Railways (PR) is grappling with major financial setbacks totalling over Rs55 billion in the last fiscal year (FY23).

An audit conducted by the Auditor General of Pakistan (AGP) last year identified governance deficiencies, financial mismanagement, and transparency issues as primary factors contributing to PR’s financial woes.

The audit underscored governance lapses, particularly in the administration and the management of Public Sector Development Programme (PSDP) projects, surpassing concerns related to risk management and controls.

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