Keeping in view the situation, Pakistan Railways General Manager (Operations) Saeed Akhtar summoned a meeting of the Lahore Divisional administration, legal advisers and representatives of the company at Lahore railway station at 10am on Friday.

LAHORE, Feb 9: Within a week or so after its launch, continuation of the operation of the first non-stop train running between Punjab and Sindh capitals with its passenger facilitation by the private sector has hit snags.

The Pakistan Railways high-ups approached their legal advisers as the company is delaying payment of the amount in violation of the agreement, signed on Aug 18 last year between Pakistan Railways and M/s Four Brothers International (Pvt) Ltd to operate Business Express between Lahore and Karachi as a joint venture under public-private partnership.

“So far, the company has paid Rs7.5 million to the railways in three instalments against dues of Rs19,146,000. Still the company owes Rs11,646,192 to railways,” a source in the PR headquarters in Lahore told Dawn on Thursday.

Prime Minister Yousuf Raza Gilani had on Feb 3 inaugurated the Business Express while expressing the optimism that the train would set new standards for the public sector to improve its level of performance for sustainable basis.

Under Article 6.1 of the agreement, the company was bound to deposit with the PR Chief Cashier and Treasurer daily payment of Rs1,595,516 for single journey and Rs3,191,032 for round trip of Business Express (303-Up/304-Down), in shape of pay order before commencement of train journey.

However, the company did not pay a single rupee to the railways till Feb 6 when a reminder was sent to it by railways chief commercial manager. In response, the company deposited Rs2.5 million with railways the same evening. Another Rs5 million were deposited in two instalments the following days, forcing PR high-ups to have second thoughts about the agreement though the reminder clearly stated: “Any delay after this date (Feb 6) will entail an additional penalty of 5 per cent of the amount. However, if no payment is deposited till sixth day then the train operation will be suspended without any notice.”

Keeping in view the situation, Pakistan Railways General Manager (Operations) Saeed Akhtar summoned a meeting of the Lahore Divisional administration, legal advisers and representatives of the company at Lahore railway station at 10am on Friday (today).