Gilgit (Investigative Report by C.R Akbar Shah): Demanding fulfilment of their rightful demands, the employees of the Northern Areas Transport Corporation (NATCO) are on protest sit-in at the General Bus Station in Jutial. The suspension of NATCO’s transport services, which has persisted for the past eleven days due to station closures, is causing daily losses amounting to millions of rupees.
The protesting workers seem to remain at the sit-in unless there is a satisfactory solution to their demand of disbursing their withheld salaries altogether.
Despite its substantial assets, NATCO operates at a loss, while smaller companies with lower fares remain profitable.
C.R Akbar Shah
NATCO, also referred to as the national institution of Gilgit-Baltistan, is a leading prominent employer in the private sector. Nevertheless, at present, this institution is facing a demonstration of disinterests on part of the government. While NATCO is not under the direct control of Gilgit-Baltistan government, the Chief Secretary G-B acts as the patron of its board of directors, with secretaries of different departments as board members.
NATCO provides employment to members of over 1,200 families in Gilgit-Baltistan. However, large scale corruption, misconduct, and irregularities, it has suffered severe damages. There appears to be a deliberate plan, pushing the institution closer to the brink of collapse.
In Gilgit-Baltistan, the Karakoram Cooperative Bank (KCB) and NATCO are two institutions that on the private sector offering employment opportunities to thousands of people. However, concerning NATCO, the current coalition government in Gilgit seems to persistently adopt an ‘ignore it’ approach.
Established in 1974 during Zulfiqar Ali Bhutto’s rule, NATCO initially began its passenger service with a fleet of a few GT vehicles. The organization has grown over time and now the organization has assets of Billions of rupees. NATCO’s asset portfolio includes175 passenger vehicles, 100 heavy trucks, 5petrol pumps, and dozens of Kanals of land. Notably, the company generates millions of rupees on monthly basis only from its cargo services.
NATCO provides employment to members of over 1,200 families in Gilgit-Baltistan. However, large scale corruption, misconduct, and irregularities, it has suffered severe damages
C.R Akbar Shah
NATCO enjoys the monopoly of contract of wheat supply from Islamabad to all districts of Gilgit-Baltistan. Out of 175 passenger vehicles, 120 vehicles are currently running on the road. While there is no information about whereabouts and condition of other 55 vehicles. Currently, 5 Cargo vehicles are operating between Rawalpindi and Gilgit-Baltistan each carrying 120 -130 passengers on daily basis.
The regular bus passenger fare from Gilgit to Rawalpindi is set at Rs. 3,300, while for newly introduced modern buses, it stands at Rs. 4,000. In a typical bus, 42 passengers are accommodated, resulting in a daily total of 126 passengers across 3 buses. The total fare from these 126 passengers amounts to Rs. 415,800 daily and Rs. 12.47 million monthly generated from 3 buses for one-way trips.
NATCO has been always portrayed as operating at loss, potentially as a basis for seeking financial aid from the government.
C.R Akbar Shah
On the other hand, a modern bus traveling daily from Gilgit to Rawalpindi carries 44 passengers, each paying Rs. 4,000 for their tickets. Consequently, this bus accumulates Rs. 152,000 daily and an impressive Rs. 5,280,000 monthly.
The total monthly revenue generated by all 4 to 5 passenger vehicles departing from Gilgit Station amounts to Rs. 177,540,000. With addition of cargo income, this total increases to Rs. 186,540,000 per month. The cumulative amount reached to a substantial amount of Rs. 2,238,480,000, equivalent to Rs. 2.24 billion. In this calculation, the income generated petrol pumps and wheat supply from Rawalpindi to different district across Gilgit-Baltistan is not included.
It is pertinent to note that NATCO has been depicted to be operating at loss to use it most probably as means to secure financial assistance from the government. To give an example in this regard, with the approval of the former Chief Minister GB Khalid Khurshid, a substantial grant of one billion rupees was given to NATCO to pay off its outstanding debts.
Despite generating a substantial revenue in the millions, NATCO is running short of funds to pay its employees, resulting in economic misery for its dedicated workforce. Additionally, the procurement process has become a serious problem for the organization. In face of this all, several important questions arise: Why is NATCO, unlike numerous other transport companies, is experiencing financial losses? The other companies are also operating on the same route with a significant profit with only a few vehicles.
Even though NATCO generates a substantial amount of Rs. 22 crores from a single station, it struggles to meet basic expenses for vehicle maintenance, including the maintenance of tires and batteries. Subsequently, NATCO vehicles frequently experience breakdowns, causing inconvenience for passengers. Additionally, there are very expensive out of order vehicles in a desperate condition, left unattended for several years, across various locations in Islamabad and Rawalpindi. The question arises: Why does NATCO’s management not take any action to either restore these vehicles to working condition or initiate the process of auctioning them?
The Chief Secretary Gilgit-Baltistan is the Chief Executive of NATCO’s Board of Directors NATCO. Are the members of the board of directors, including the managing director, is unaware of pathetic state of NATCO? Why is the board of directors being unaware of this condition of the vehicles? Similarly, why the board of directors do not ponder over the fact that despite largest company with assets worth billions of rupees and most expensive fleet of vehicles. NATCO is operating at loss, while smaller companies charge less and remain profitable. These all questions lead to another question: Why the Board of Directors do not seriously seek a permanent solution to steer NATCO out of its current crisis?
With earnest efforts directed towards addressing the institution’s problems and improving its check and balance system, NATCO can contribute generate at least third of Gilgit-Baltistan’s total budget.
C.R Akbar Shah
The public representatives, elected by the people, have conspicuously kept silence on the distressing state of NATCO. These representatives are often seen shouting for their own perks and privileges and engaging in physical altercations within the assembly.
With earnest efforts directed towards addressing the institution’s problems and improving its check and balance system, NATCO can contribute generate at least third of Gilgit-Baltistan’s total budget. It is important for the GB government to intervene and take NATCO out of current situation by transforming it into a profitable organization. To achieve this, the government should investigate the income generated from different stations, petrol pumps, and wheat supply contracts.
It is the need of the hour to introduce a robust mechanism of check and balance to monitor the administrative and financial aspects of the institution. The people involved in wrongdoing must be held accountable and punished. There is a need to establish solid and comprehensive policy framework to protect the rights of NATCO employees providing a legal cover. Additionally, given the prevailing inflation rates, the management should introduce an increment of 50% in its employees’ salary.
