We are enclosing a copy of letter No.5(1/98-Dev-II dated the 19th August, 2006 received from Ministry of Petroleum and Natural Resources on the above subject.

In terms of the letter, Government of Pakistan with a view to improve the quality of environment, has chalked out a policy for gradually phasing out inter-city diesel engine public transport in Karachi, Hyderabad, Lahore, Faisalabad, Peshawar, Quetta and Islamabad/Rawalpindi by end 2007. Since it will require a huge investment, the involvement of banking sector is obvious. The banks/DFIs are, therefore, encouraged to develop credit products for financing of CNG buses/mini/buses/wagons and their manufacturing facilities in Pakistan in terms of their respective credit policies.