IN THE SUPREME COURT OF PAKISTAN 
 
   (Original Jurisdiction) 
 
 
 
 
Present: 
 
 
Mr. Justice Iftikhar Muhammad Chaudhry, CJ.  
 
 
Mr. Justice Amir Hani Muslim 
 
Suo Moto Case No.18 of 2011 
And C.M.As No.4823-4825, 4916 & 4820/2011 
And H.R41939 of 2011 
(Irregularities and Non-Payment of Salaries/Pension to 
Pakistan Railways employees) 
 
On Court Notice: 
Maulvi Anwar-ul-Haq, AGP 
 
For Pakistan Railways:Rai Muhammad Nawaz Kharal, ASC 
 
 
 
 
Mr. M. Naeem Malik, GM, MTS 
Mr. Ahsan Mehmood Mian, Addl. G.M, 
Mr. Muhammad Tariq Khan, CME/WQ 
Mr. Shafiqullah, Secy, Railways Board 
Mr. M. Azam Ghafoor, Chief Controller 
Mr. M. Ashraf Lanjaar, Director (LA) 
 
 
For NAB:  
 
Mr. Akbar Tarar, Addl. P.G. NAB 
 
 
 
 
Mr. Fauzi Zafar, ADP, NAB 
 
In C.M.A 4820/2011: Nemo 
 
In CMA 4823/2011: Mr. Salman Akram Raja, ASC 
 
 
 
 
With Sheikh Rashid Ahmed, 
Former Minister, Railways 
 
In CMAs 4824,4825/11: 
Mr. Zulfiqar Ahmad Butta, ASC 
& 4902/2011 
 
In CMA No.4916/11: Syed Zafar Ali Shah, Sr. ASC 
 
In CMA 5088/11: 
Mr. Hafeezullah Cheema, ASC 
 in person 
 
In CMA 5225/11: 
Sardar Ayaz Sadiq, MNA/ Chairman  
 
 
 
 
Standing Committee on Pakistan Railways 
 
 
 
Date of hearing:  
30.11.2011 
 
ORDER 
 
 
  
Iftikhar Muhammad Chaudhry, CJ.— Sheikh 
Rashid Ahmad, Former Minister for Pakistan Railways 
SMC 18/2011 
2 
pointed out that after commencing hearing of this case, 20 
locomotives  have been rehabilitated and are being used 
with railway trains. Former Minister has also referred the 
audit report of current year and read out different portions 
therefrom, according to which huge losses have been 
caused to the Railways on account of mismanagement, 
corruption and corrupt practices, etc. Surprisingly the 
concerned authorities have failed to initiate action against 
the persons responsible, till date. Mr. Shafiqullah, Secretary 
Railways Board stated that in addition to it, 21 locomotives 
shall also be rehabilitated on or before 21st December, 2011 
2. 
 
It may be noted that identical objections in 
regard to corruption were raised on the last date of hearing 
in respect of auctioning of the scrape and we had directed 
the Chairman NAB to look into this matter and initiate 
actions according to law. In respect of the audit report as 
well, we direct the Chairman that he should collect the audit 
report from the Railways Department and examine the 
same 
to 
ascertain 
the 
criminal 
liabilities 
of 
the 
officers/officials and other persons responsible for the 
corruption and corrupt practices. The learned Attorney 
General for Pakistan as well 
as learned Additional 
Prosecutor General, NAB pointed out that in compliance 
with the orders of this Court, action has already been 
initiated by NAB.  
3. 
  
Sardar Ayaz Sadiq, MNA, Chairman Standing 
Committee on Pakistan Railways has appeared and stated 
that there is no such serious problem with the Railways 
except the things are becoming complicated for one or the 
other reason. He has pointed out that bailout packages 
have been issued and by the time 12 billions have been 
received by the Railways Department but on account of 
mismanagement, 
no 
progress 
has 
been 
made 
for 
rehabilitation of Railways. One of the reasons pointed out 
SMC 18/2011 
3 
by him was the non-functioning of the Railways Board. The 
Secretary Railways Board stated that about one year back 
Prime Minister of Pakistan had accorded approval of the 
Railway Board wherein names of some of the private 
persons had been mentioned but despite lapse of a 
sufficient time the Board has not been notified. He further 
stated that the Government should nominate such persons 
to be the members of Board, who have no personal interest 
or stake and preference should be given to the persons who 
have expertise in the relative commercial business. The 
learned Attorney General has stated that he would discuss 
these issues with the Secretary Railways and on the next 
date of hearing shall inform the reasons for non-issuance of 
the notification of the Railway Board.  
4. 
 
 The Secretary Railways Board further informed 
that out of available 494 locomotives 60% have already 
lived their lives, therefore, despite spending money on their 
repairs, no useful purpose can be obtained from the same. 
On the other hand Sheikh Rashid Ahmad has pointed out 
that majority of the engines are those, which have been 
parked for want of minor repairs, say like; in some of the 
cases on account of use of contaminated oil the crank 
shafts have been damaged and minimum expenditures for 
replacement of crank shaft is required and if this procedure 
is adopted, the Railways can rehabilitate a good number of 
their engines. We do not have technical expertise, however, 
we direct the Chairman that he should prepare a list of each 
locomotive, pointing out the defects and the plan for its 
rehabilitation 
alongwith 
approximate 
cost 
of 
each 
locomotive. This exercise should be completed within a 
period of ten days and copy of the same shall be sent to the 
Registrar as well as Sheikh Rashid Ahmad, Former Minister, 
Railways. The Registrar shall convene a meeting of Former 
Minister and representatives/engineers of HMC, HIT and 
SMC 18/2011 
4 
Risalpure as well as the Railway authorities and after taking 
their reaction, on the detail report on the proposed report, 
the Registrar shall submit his report on the issue for perusal 
of this Court before the next date of hearing.  
5. 
 
We are informed by the Secretary Railways that 
as far Auditor General of Pakistan is concerned, it has no 
expertise for conducting forensic audit, therefore, with the 
permission of competent authority some private charted 
accountant company of repute shall be involved subject to 
payment of the cost etc. to do the needful. Progress report 
in this behalf may be submitted on the next date of 
hearing. We expect that employees of the railways 
represented by the learned counsel shall also show their 
interest for the purpose of reactivating the Pakistan 
Railways as early as possible.  
6. 
  
It is informed by the Mr. Ayaz Sadiq, MNA that 
immovable properties of the Railways Department, situated 
in different provinces has been encroached by different 
agencies including Defence, Rangers, FC and private 
persons.  Detail report in this behalf be submitted to the 
Registrar of this Court within seven days, who shall forward 
the same to all the Chief Secretaries for ensuring that the 
property belonging to the Railways Department is handed 
over to them.  
 
Let case be adjourned to a date in office after three 
weeks.  
Chief Justice 
 
Judge 
 
 
Islamabad, the 
30th