Abstract
This paper estimates change in Pakistan Railways (PR) efficiency over time. It is important to see
the performance in a dynamic context. Based on the fundamental CCR-BCC (Charnes, Cooper and
Rhodes, 1978; Banker, Charnes and Cooper, 1984) model, we use an extended Data Envelopment
Analysis (DEA) model developed to deal with time series method for the period 1966-2017. The PR
became financially inefficient from 1985 onwards. Fewer and redundant inputs were used for
service delivery which caused product inefficiency. Rising expenditures increased cost of operations
which became the source of allocative inefficiency. Both resulted in train closures and shrinking
business. Our results show pure technical efficiency of production at 69 per cent, indicating the
output waste of 31 per cent. The empirical findings suggest that the pure technical efficiency of
production outweighs the pure technical efficiency of allocation. The main policy implication is
that steady investment under an autonomous and professional management is required for a turn
around.
Nadia Tahir, Pervez Tahir. (2020) Empirical Analysis of Railway Efficiency in Pakistan , Abasyn Journal of Social Sciences, Volume-13, Issue-2.
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