Railways pays Rs2b outstanding loans to SBP
By Khalid Amin

ISLAMABAD—Pakistan Railways (PR), as part of its debt retirement efforts, has paid back Rs. two billion loan to State Bank of Pakistan (SBP) within one month. “We have paid Rs. two billion outstanding loans out of Rs. 23 billion borrowed from State Bank of Pakistan,” Caretaker Minister for Railways, Mansoor Tariq told.
He said Pakistan Railways would be clearing all remaining loans by June 2009. “We have a total loans of Rs. 21 billion to be paid to the State Bank of Pakistan and this would be paid by next year.” “Pakistan Railways will become independent after the payment of the all loans and run with the help of its own resources”, he said.
Mansoor Tariq said in the four-month of its tenure, the Caretaker Government has taken many steps for improving efficiency of PR and improve its standard.
Pakistan Railways has decided to clear the remaining amount and the authorities are chalking out an effective strategy. The department is clearing the dues of the SBP with interest on monthly basis, the minister said.
Mansoor Tariq said, railways land would be leased to generate additional revenues for paying loans and five sites have been identified for this purpose with four sites in Karachi and one in Lahore.
The minister said the authority has recovered 60 percent of its illegally occupied lands as a result of a campaign launched across the country, which is used for the commercial ventures with the national and international firms.
Mansoor said Pakistan Railways has the potential to meet its expenditures from its existing resources which can be spent on improving its infrastructure and providing the rail passengers with best facilities.
He said in order to turn these precious lands into revenue generating assets, private public partnership has to be encouraged for joint ventures with Pakistan Railways.
Mansoor Tariq said a number of steps which have recently been taken to improve the performance of freight segment of PR. High capacity express container trains have been introduced, which operate daily between Karachi and Lahore.
The travel time has now been reduced from 56 hours to 28 hours, he added.
He said efforts are being made to expand freight network over the coming years wherein another cargo express has been launched between Faisalabad-Multan-Karachi that operates twice a week.
The Minister said PR is keen to have transit system without incurring any financial burden.
The narrow gauge steam engine was run on the less frequentlines. A display model of the lane changing and up and down signal had also been installed. Different kinds of hand railway carts were also put on display and would offer a unique photo-moment to picnickers.
The logic for establishing a Heritage Museum at Golra Railway Station was attributed as a first step towards establishing a fullfledged railway station at Islamabad. A steam safari ride to the major tourist attraction, the ancient city of Taxila on alternate days is also on cards in near future.
Pakistan Railways will become independent after the payment of the all loans and run with the help of its own resources”, he said.