The government has doubled Pakistan Railway (PR) debt limit, from Rs 1 billion to Rs 2 billion, by issuing guaranty to Pakistan State Oil (PSO), for buying diesel, it is learnt. Sources told Business Recorder that previously PR could buy diesel worth Rs 1 billion on loan from PSO. Now the Railway would get fuel worth Rs 2 billion on debt.
However, it (Railway) would be bound to make payment on regular basis, without any delay. From next month, the PR is likely to get diesel for a month. Sources said that the Finance Ministry has formally issued directive to PSO to double the PR debt limit. The step has been taken on the intervention of President Asif Ali Zardari and Prime Minister Yousaf Raza Gilani.
PR schedule remains disturbed due to fuel supply for its locomotives. It was a long standing demand of PR to increase its debt limit from Rs 1 billion to Rs 2 billion. PR and PSO were in the process of finalising and signing a long-term fuel supply agreement and PR had asked the government to increase its fuel ceiling from Rs 1 billion to Rs 2 billion.
Talking to Business Recorder, Railways General Manager (GM) Saeed Akhtar confirmed that PR debt limit has been doubled. After Finance Ministry's guaranty, many suspended trains would resume their operations, he added. The GM said that PR would soon get Rs 6.1 billion loan from banks to help steer it out of current financial crunch and overcome locomotives shortage.
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