Representational image of railway tracks. PHOTO: REUTERS
LAHORE: Development work in different departments of Pakistan Railways (PR) Lahore Division including civil and mechanical engineering has stopped as the department is unable to make payments to the suppliers.
The situation developed after the Federal Board of Revenue (FBR) asked PR to furnish its local purchases with receipts from only registered suppliers who paid 17% sales tax.
The PR has also halted further local purchases needed for maintenance of railway stations and residences of employees including train operation staff.
Sources said that the processing for payment of 21 such cases had been deferred as the suppliers could not fulfill the condition of 17% sales tax. These cases were not supported by slips showing registration code numbers.
The 21 purchases had old-styled slips which showed the serial number and monogram.
The PR officials are facing problems as the delay in payments has stopped further purchases as well as several projects are facing delays for weeks.
The railways administration assured that the procedure as laid down by the government would be followed.
They maintained that currently the local purchases had been made according to the old method and added that the cases that were pending would be resolved.
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