The Privatisation Commission plans to appoint a financial consultant for the privatisation of Pakistan Railways by March 1998, government officials say. The commission will issue requests for proposals to prequalified companies before the end of the year. The deadline for submitting proposals is expected to be mid-February.

The railway system has been divided into core and non-core assets. Non- core assets, which include sleeper, locomotive and railway carriage factories, are to be sold by the commission through public auctions. The remit of the financial adviser will include core assets only. Core assets comprise freight services, passenger services and infrastructure. The government is currently in the process of restructuring operations into three corporate entities covering these areas. The government will sell a single stake in each entity to a strategic investor. The stake will carry management control.

Pakistan Railways carried freight of 6,800 million tonne kilometres in financial year 1995/96. Passenger kilometres totalled 18,904 million. Infrastructure comprises 12,624 kilometres of track and 781 stations, in addition to signalling equipment and other fixed facilities. The commission plans to sell at least one of the three entities, probably the freight business, in 1998, the officials say.