National Bank of Pakistan (NBP) will provide cash-strapped Pakistan Railways a Rs6.10 billion-rupee loan to revamp its depleted fleet, media reports said on Wednesday.
According to the sources, an agreement to this effect has been reached between the National Bank and PRACS – a subsidiary of Pakistan Railways. Under the agreement, the NBP will provide the funds in one-go but the loan amount will be payable in the next five years carrying a mark-up of 10.45 percent per annum.
During the first two years, Pakistan Railways will only pay the mark-up after every six months whereas in the next three years Railways will also be liable to payback principle amount along with the mark-up. The loan will be used for repair and maintenance of Railways engines.
