ISLAMABAD - Keeping in view the financial constraints being faced by Pakistan Railways, the Finance Division Saturday issued a letter stating that existing line of credit for Pakistan Railways from Pakistan State Oil (PSO) has been increased to Rs 2 billion. According to a letter issued by Finance Division, the decision of increasing the line of credit would ensure smooth supply of oil to the Railways. The issue was discussed in detail during a committee meeting held on August 4, which was chaired by Finance Minister Dr Abdul Hafeez Sheikh and attended by Minister for Railways Ghulam Ahmad Bilour, Minister for Religious Affairs Syed Khursheed Shah and other officials to bring out solution for the recuperation of Pakistan Railways. Ministry of Railways, Pakistan State Oil, and Ministry of Petroleum and Natural Resources have been informed accordingly. Pakistan Railway is as at a stage where it finds unable to run its optimal operations due to declining availability of locomotives. It requires urgent financial assistance to improve its performance and financial health. The government has constituted a committee in order to bring PR out of crisis. Apart from increasing line of credit, the committee has decided that PR would be provided Rs6.1 billion through a banking consortium for rehabilitation of locomotives while Rs4 billion would be given through re-prioritisation of Public Sector Development Programme (PSDP) of FY2011-12 for improvement of tracks and rolling stock. Similarly, Rs15 billion have already been allocated for PR in PSDP. Similarly, the committee also came with a suggestion to hire foreign consultants to bring out solution for recuperating Pakistan Railways under a comprehensive plan of restructuring the organisation. APP adds: Pakistan Railways is considering to attract private sector for investment in Pakistan Railways to bring the government owned entity out of crises. The Railways authorities will give incentives to private sector if they agree to repair and rehabilitate locomotives and tracks, an official of the Ministry said. He said the Railways would sign agreement with private sector to get locomotives and tracks repair and rehabilitate and the Railways would allow the investor to use locomotives and tracks free of cost for freight services. He clarified that the private sector would be bound to use the locomotive and tracks for personal use rather than plying it on rent, adding that PR would pay repair money to the investor through rebate tariff. The official said that such an agreement has already been signed with National Logistic Cell. Under the agreement NLC will rehabilitate and repair as many as 20 dead locomotives of PR from its own expenses. After the repair work the Cell would operate these locomotives which would specially be dedicated for NLC for its own freight. He said the agreement between Railways and NLC was a pilot project which was singed on the special directives of Minister for Railways, Haji Ghulam Ahmed Bilour. He said the minister has directed Railways to take certain similar incentives with private sector to make Pakistan Railways self-sufficient as well as to bring it out of crises.