I guess Pakistan only asked for 50 locomotives on lease and Indian Railway refused. BHEL is a separate company from Indian Railway. So they can only make engines if they can be sold. And Pakistan might have wanted to first test these engines on lease before buying them. So Indian Railway is the only choice for them.
No train to Pak for rlys, as it sell engines to others - Hindustan Times
This is the only explanation that seems plausible after looking at both news. Or the age old reason that the payments from Pakistan may get stuck if relations worsen.
You know what. That link looks BS once I read through it. It was written by an imbecile, look at all the figures.
Indian Railways wary as Pakistan makes fresh offer for engines | Pakistan Today | Latest news | Breaking news | Pakistan News | World news | Business | Sport and Multimedia
This is a decent and balanced piece and talks about 'corporate risk' which is another way of saying 'we don't trust you'. The Indian rags Hindustan times and Times of India talk BS about the episode. BHEL might have been rubbed off after Pakistani railway officials got rubbed off by Indian Railway.
The lesson seems to be that Pakistan should not just talk to government departments for requests like this. In this case, Indian foreign secretary even wrote a letter to Indian Railway to look into the possibility and pursue it. But someone at the Indian Railways was an a$hhole. They should have sold at least 5 engines.