Plan to import locomotives dropped
ISLAMABAD: The much-trumpeted project to purchase 150 locomotives from foreign companies this fiscal year has been abandoned, as Federal Minister for Railways Khawaja Saad Rafique has decided to manufacture new engines locally and repair the old ones to save the department from getting more loans.
Sources said on Friday that to save the department from getting more loans, Saad Rafique had decided not to procure foreign-made locomotives or other goods. The department already has to clear Rs70 billion liabilities against loans to different firms and donor agencies.
On the other hand, the department’s performance has deteriorated due to the worst financial crunch, making it unable to launch any big scheme in the last one decade to rehabilitate it.In view of this bad situation, the minister believes purchase of foreign-made locomotives will cost millions of dollars thus burdening the department with more loans.
To save the department’s position, Saad Rafique has directed cancellation of all agreements with foreign firms, including China and the US, for procurement of locomotives and other rail goods. Instead, he has ordered the authorities concerned to prepare over 58 locomotives at the local level to save money. An amount of Rs500 million has been sanctioned out of which Rs250 million has been released and work has been started on the project. The 58 locomotives will be manufactured at the carriage factories of different railway stations.
Mohammad Ali, Personal Secretary to Khawaja Saad Rafiq, confirmed that the old plan to procure 150 new locomotives from American firms had been dropped and work had been undertaken on the manufacture of 58 locomotives at the local level.
After completion of the project, the locally-made locomotives would be coupled with passenger trains plying different routes. Mohammad Ali was unable to reply how many freight trains would be made operational which was the major source of generating revenue. He said the decision would be taken after the manufacture of locomotives.