ISLAMABAD, Dec 31: A consortium of Pakistani banks has sanctioned a Rs6.1 billion loan to repair 96 railways’ locomotives, official sources told Dawn on Saturday.

A meeting to be held at the Railways Headquarters in Lahore on Jan 2 is expected to finalise the schedule for loan utilisation.

In 2011, the department witnessed the most difficult period of its history, facing the liquidity and rolling stock crises which caused closure of all branch line and freight services. Several main line trains were also closed.

However, PR general manager Saeed Akhtar expressed the hope that the year 2012 would see 240 locomotives back on the track and gradually the entire inventory of 500 locomotives would be in operation.

He said the freight service, which only recently resumed operation, had started generating revenue.

The board of directors of the Pakistan Railways Advisory and Consultancy Services (Pracs) is meeting on Jan 2 to finalise the schedule for rehabilitation of locomotives.

Pracs has already received the proposal of loan from the consortium.

At present, only 160 of the 500 locomotives are functioning.

The general manager said about 100 locomotives would be repaired on the public-private partnership basis. Pakistan Railways is waiting for funds to be released by the ministry of finance to start the rehabilitation work.

The first business train between Lahore and Karachi to be run in partnership with the private sector is ready and is waiting to be inaugurated by the prime minister. Mr Akhtar said the Lahore-Karachi Shalimar Express would also be running soon.