Pakistan Railways Provided Loan for Urgent Fleet Repairs
Pakistan Railways (PR) will be provided with a much needed loan from the National Bank of Pakistan (NBP) to help it revive its depleted locomotive fleet. The loan of 6.1 billion Indian Rupees ($63.7 million US dollars) will allow 96 diesel locomotives to be returned to service.
NBP Pakistan Railway Advisory and Consultancy Sevices (PRACS) a subsidiary or Pakistan Railways signed the agreement for the loan which states that the NBP will release funds as a lump sum repayable over five years with an annual interest rate of 10.45%.
The prolonged shortage of serviceable locomotives have resulted in declining numbers using PR’s services and thus seen revenues fall massively. This latest loan agreement is just another step for PR in increasing it’s revenues as the Pakistani government are currently evaluating tenders for procurement of 150 new locomotives and last month saw Indian Railways agree to sell 50 locomotives to PR for 35 million Indian Rupees whilst leasing a further 50 trains for 21,000 Rupees per day.