Punjab to pay Rs6.28b interest on OLMT loan
Sources say Punjab's economy will continue to bear the burden of the project till 2036
PHOTO: FILE
LAHORE:
Punjab will pay Rs6.28 billion interest annually on loan obtained for the Orange Line Metro Train (OLMT) project.
During 12 years, a huge amount of at least Rs75.36 billion will be paid in interest.
The sources said Punjab's economy will continue to bear the burden of the project till 2036. With a debt of over Rs953 billion, the Punjab government will pay interest on the first domestic light rail project of $40.62 million annually for 12 years.
The previous provincial government had signed a $1.62 billion contract for the OLMT with a bank. The government did not make details of the contract public despite the demands of the opposition. Even after the multiple directives of the auditor general of Pakistan, the Punjab Mass Transit Authority did not provide the details of the agreement.
Published in The Express Tribune, February 5th, 2020.
Punjab will pay Rs6.28 billion interest annually on loan obtained for the Orange Line Metro Train (OLMT) project.
During 12 years, a huge amount of at least Rs75.36 billion will be paid in interest.
The sources said Punjab's economy will continue to bear the burden of the project till 2036. With a debt of over Rs953 billion, the Punjab government will pay interest on the first domestic light rail project of $40.62 million annually for 12 years.
The previous provincial government had signed a $1.62 billion contract for the OLMT with a bank. The government did not make details of the contract public despite the demands of the opposition. Even after the multiple directives of the auditor general of Pakistan, the Punjab Mass Transit Authority did not provide the details of the agreement.
Published in The Express Tribune, February 5th, 2020.