Finance ministry releases Rs2 billion for Pakistan Railways
The earlier overdraft of Pakistan Railways has come down from Rs40 billion to Rs38 billion.
The finance ministry released Rs2 billion to provide some reprieve to Pakistan Railways, which is stuck in a debt crisis.
A State Bank spokesperson acknowledged that Rs2 billion have been received by it.
After the payment, the earlier overdraft of Pakistan Railways has come down from Rs40 billion to Rs38 billion.
The payment came after the federal government approved two billion rupees for Pakistan Railways to help it deal with a major debt crisis.
But analysts said this amount is not enough as it will not last for long.
Earlier it was reported that the Pakistan Railways is unable to buy fuel because it does not have sufficient funds and its existing fuel supply will last just few more days, said Railways Minister Ghulam Ahmad Bilour.
He termed a severe shortage of rail engines another major hurdle in the way of revenue generation. The minister said that railways needs 400 engines to overcome its deficit, adding that the government needs to make a huge investment in the organisation to save it from shutting down.
A State Bank spokesperson acknowledged that Rs2 billion have been received by it.
After the payment, the earlier overdraft of Pakistan Railways has come down from Rs40 billion to Rs38 billion.
The payment came after the federal government approved two billion rupees for Pakistan Railways to help it deal with a major debt crisis.
But analysts said this amount is not enough as it will not last for long.
Earlier it was reported that the Pakistan Railways is unable to buy fuel because it does not have sufficient funds and its existing fuel supply will last just few more days, said Railways Minister Ghulam Ahmad Bilour.
He termed a severe shortage of rail engines another major hurdle in the way of revenue generation. The minister said that railways needs 400 engines to overcome its deficit, adding that the government needs to make a huge investment in the organisation to save it from shutting down.