The allocation was the part of Rs 11 billion bailout package approved by the cabinet committee for restructuring of public sector enterprises. This amount was decided to be arranged through a consortium of commercial banks backed by a sovereign guarantee, while the PR would not only have to pay the loan, but also the interest. The case regarding the issuance of sovereign guarantee is pending with the Ministry of Finance since March this year, sources said.
Sources said that a technical evaluation in this regard had been completed. Financial bids, they said, were expected to be opened in two or three days, while repairs of locomotives would be completed within the next 18 months. General Manger PR Junaid Qureshi said that a tender for procuring spare parts had been issued, adding that bids would be opened soon.
The number of locomotives operated by PR dropped from 494 to 465 during the current year, of which only 154 are in working condition. The PR has also sent a summary to the cabinet for procuring 75 locomotives, besides issuing tender for procuring 150 new locomotives, but there is a stay order in this regard. The PR also placed an order for spare parts with Electro Motive Diesel (EMD) of the United States for rehabilitation of 27 locomotives, but the rehabilitation process would take between six to eight months. The rehabilitation of these locomotives will be undertaken at Pakistan Mughalpura Railway Workshop in Lahore, sources added.