The donors have suggested conversion of the Bangladesh Railways into a 100 per cent state-owned company to reduce deficit and make it a viable organisation. official sources said yesterday, reports BSS.

According to a report. Bangladesh Railway's (BR’s) deficit stood at Tk 100 crore to Tk 150 crore annually during 1975 to 1993. The conversion of a department of a government ministry into a 100 per cent state-owned company under the companies act would be a new concept, the report said.

The report on organisational reform of Bangladesh Railways Jointly prepared by Asian Development Bank (ADB) and Canadian International Development Agency (CI DA) in collaboration with (the government also suggested that the approval of the cabinet was required by the end of August this year to carry out successfully the conversion programme.

The report said after the approval the government would nave to express publicly its res-

olution and its strong support for the process to the general public and to railway employees. The government would have to take several actions to initiate the conversion process and to demonstrate its commitment. it added.

It would appear that BR could operate a better and more competitive railways, could actually generate profits and could reach a substantial positive cash position if the conversion to a state-owned company proceeded, the report observed.

The report mentioned that the BR has steadily lost market share in both passenger and freight transport markets. BR s share of passenger traffic fell from 30 per cent to 12 per cent and freight traffic from 28 per cent to 7 per cent, the report said.