Railway''s foreign, domestic loans stand at Rs 61.73 billion, National Assembly told

The National Assembly was informed on Wednesday that at present a total of Rs 21.73 billion foreign and Rs 40 billion indigenous loans (SBP overdraft) were outstanding against the Pakistan Railways. Minister for Railways Ghulam Ahmed Bilour told the National Assembly that PR borrowed these loans for its various development projects.
He said that a total of Rs 26.31 billions were repaid against the foreign loan, buyer/supplier credit and indigenous loan during the last five years. He said that the PR arranged loans from foreign as well as local financial institutions for its development projects. He said that the government allocated limited funds for PR during last five years that compelled the Railways to take foreign loans for execution of its development projects.
He added that steps were being taken to generate additional revenue through indigenous sources to support development projects. He said that foreign loans were only availed from those institutions, which impose minimum conditions. In another written reply to a question, the minister said that EXIM Bank China, Asian Development Bank (ADB) and Islamic Development Bank (IDB) had agreed to invest in Pakistan Railways during the last three years.
About rehabilitation of the track from Lahore to Peshawar, he said that the Central Development Working Party (CDWP) of Planing Commission in its meeting held on 21-10-2011 had recommended the first phase of the project from Lahore to Lalamusa at a cost of Rs 17,1 billion (including FEC 8.453 Million) for approval to Executive Committee of National Economic Council (Ecnec). The government will fund 25 percent of the project from PSDP, while 75 percent will be financed by ADB. Formal loan agreement with ADB will be finalised after approval of the project by Ecnec.
Regarding rehabilitation of the railway track from Quetta to Taftan, he said that the Concept Clearance Committee had approved the project in principle in its meeting held on 07-4-2011. Formal loan agreement with IDB will be finalised after approval of PC-1 of the project, he added.