Karachi: The federal government has exceeded the borrowing limit of PKR 4 billion from the State Bank of Pakistan (SBP) on account of Pakistan Railways, as it borrowed an exorbitant PKR 38.5612 billion owing to huge financial crises being faced by the Railway.
According to Alfalah Securities Limited, the Railway authority had also requested the finance ministry to disburse an additional PKR 20 billion whereas the ministry has turned down their request on account of surpassing the limits of the SBP. However, the Cabinet Committee on Restructuring (CCoR) has agreed to disburse PKR 0.6 million on account of electricity bill payment from the budget. The Officials complained that the budget allocated for Pakistan Railway was of PKR 25 billion, which is insufficient according to their requirements and they are even unable to pay dues on account of spare parts replacement and minor maintenance of locomotives. They further said that the government has agreed to arrange PKR 6 billion from the banking system through a consortium which would enable them to rehabilitate 96 locomotives, resulting in restoration of freight and passenger services.