Pakistan Railways' international membership might get suspended for non-payment of fee

Pakistan Railways’ (PR) membership of the Intergovernmental Organisation for International Carriage by Rail (OTIF) might soon come under the train as it is on the brink of suspension due to non-completion of the annual fee for two years. According to ANI, Pakistani newspaper Dawn revealed that the organisation’s membership is important for the country as it includes Pakistan in uniform railway law to connect Europe, Asia and Africa. 

What is the OTIF?

The Intergovernmental organisation for International Carriage by Rail (OTIF) is a Berne (Switzerland)-based body that falls under the Convention Concerning International Carriage By Rail (COTIF). Being operational since 1893, the body is the oldest organisation in this sector and is responsible for dealing with the international rail traffic while aiming to promote, improve and facilitate the same, said a report by Dawn. 

A 2020 report revealed that the 51 member states including one regional economic integration organisation of the OTIF-COTIF deals with aspects of international carriage by using simple and effective tools such as providing legal and technical support. 

Pakistan’s financial crunch

Citing PR Chairman and Federal Secretary Dr. Habibur Rehman Gilani from Dawn, ANI reported that he credited the reason for Pakistan’s non-payment of the membership fee to the financial crunch caused by the ongoing Coronavirus pandemic. According to another source cited by Dawn, the Pakistan Railways hasn’t paid the fee for 2020 and 2021, which has resulted in the delayed resumption of the Istanbul-Tehran-Islamabad freight train. 

The Pakistan Railway which reportedly has nearly 80,000 employees, is due to pay $1,80,000 ($90,000 per year) to save its membership. Talking about the payment, Gilani has said that Pakistan knows the importance of OTIF-COTIF for the international rail freight business and will soon clear all the dues. However, he also informed that he had written a letter to the organisation for its inactivity in building PR’s capacity and asked for facilitations that OTIF has pledged for its members, as per ANI. 

Dawn reported that restoring PR’s lost membership due to non-payment of fees won’t be easy. Moreover, it is also revealed that the country has not operated any international train since 2010 and the pandemic has only worsened its revenue. 

Image: AP, Twitter/@GovtofPakistan