Revival of Railways: PR finalises three agreements worth $343.657 million, National Assembly told

The government on Wednesday informed the National Assembly that Pakistan Railways has finalised three agreements amounting $343.657 million during the last three-year as an effort to revive the railways network.
This was stated by Minister for Railways Ghulam Ahmad Bilour during question-hour in the House, saying that the loans were finalised for procurement of 75 diesel electric locomotives, replacement of old signalling gear on Lodhran-Shandara Bagh main line and procurement of 202 passenger coaches.
The Minister for Railways told the House that a proposal was under consideration to extend railways' network to China and Afghanistan. Under the proposal, Bilour said that China would spend $6 billion to lay the rail infrastructure between the two countries. He said that so far no interest has become due in accordance with the terms and conditions of the loan agreement.
He further said that Pakistan Railways has decided to repair its 200 inoperative locomotives with the assistance of private sector as part of efforts to fully revive the railways. He said that some organisations including, National Logistic Cell (NLC) have shown interest to rehabilitate the locomotives through public-private agreements. He added that a draft agreement with them has been prepared and was in the process of finalisation. He said currently 106 locomotives were functional and more locomotives were required to efficiently run the freight service. He said 76 pairs of trains were discontinued during the last three years due to shortage of locomotives.
In response to a supplementary question, Bilour said that estimated cost of the losses to Pakistan Railways' infrastructure and assets in 2010 was Rs 6395.239 million and in 2011 it suffered a loss of Rs 247.237 million mainly due to floods in Sindh province.
About present status of railway traffic with neighbouring countries, he said that there were two kinds of traffic with neighbouring countries, ie passenger and freight. He said that passenger traffic is being handled with two neighbouring countries including India and Iran, while freight is handled with three countries, ie India, Iran and Afghanistan.
About financial irregularities in Pakistan Railways and the action taken, the minister said that a total of Rs 1103.506 million irregularities were detected during the last four years and the railways management was taking actions against the involved persons as per DAC/PAC directives.