The Pakistan Locomotive Factory at Risalpur, a public spread on an area of 251 acres (102 ha), was put into service in 1992 with the collaboration of Government of Japan at a total cost of Rs.2284.00 million, including a foreign exchange component of Rs.1496.00 million. The factory can produce two diesel-electric locomotives per month on single-shift basis, but this can be doubled by introducing a second working shift. The factory is equipped with the state-of-the-art equipment which can be employed in the building of diesel-electric locomotives of suitable horsepower, as well as electric locomotives with minor adjustments.
Since 1993, twenty three PHA-20 type 2,000 hp (1,491 kW) diesel-electric locomotives have rolled out of the factory. The ongoing project of 3,000 hp (2,237 kW) AGE-30 diesel-electric locomotives is at the verge of its completion, which is a milestone in the history of the factory. Apart from manufacturing new locomotives, the Pakistan Locomotive Factory has also successfully rehabilitated five diesel-electric locomotives of GRU-20 Type and manufactured other various spares/components for railway maintenance divisions and rehabilitation projects.