Summary National Bank of Pakistan will provide Rs 6.1 billion loan to Pakistan Railways.
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.
