The Pakistan Railways (PR) has cancelled locomotive purchase order from China after series of complaints.
The decision was taken by the railways ministry after a report was submitted by the concerned officials. Chinese firm involved in the deal has also been blacklisted.
According to an audit report for the fiscal 2012-13, 64 out of 69 locomotives purchased from China in 2002 were found faulty and out of order which were lying idle in the railways workshop. The ministry of railways had to suffer loss of billion of rupees due to supply of faulty locomotives by the Chinese firm.
The Railways authorities had repeatedly asked the then railway minister Javed Ashraf Qazi not to strike this deal but he did not agree and signed the agreement as per his personal desire plunging the railways into horrendous financial crisis.
The erstwhile PPP-led government also placed order with the same Chinese firm to supply 75 locomotives to Pakistan but Railways Minister Khawaja Saad Rafiq revoked the order. Rafiq said that corruption would not be tolerated in the railways and corruption cases pertaining to purchase of railway engines would be handed over to the NAB.