The locomotives will be partially assembled at Pakistan Locomotive Factory Risalpur, an official in the Ministry of Railways told APP.
He said a contract has been signed for manufacturing of five diesel powered locomotives at the Locomotive Factory. The supply of material and kits for the assembling of these locomotives will be received by May this year.
The official said that efforts were also being made to prepare a business model to enhance the productivity of Risalpur Locomotive Factory.
All the pre-requisites of Japan International Cooperation Agency have been fulfilled to secure financial assistance for Karachi Circular Railway Project, he added.
He said feasibility as well as social, environmental and engineering studies of the project have already been completed.
The official expressed the hope that the project will be completed within tenure of the present government.