PESHAWAR: Because of the ongoing financial crisis, the Khyber Pakhtunkhwa (KP) finance department has directed the local government department to immediately return the entire fund provided for development schemes.
Sources said that the department has been asked to return Rs1.33 billion as the provincial government is unable to provide salaries to its employees and meet its current expenditures.
Under the mega project, ‘Khyber Pakhtunkhwa Cities Improvement Project’, of the Local Government Department, the finance department had released separate amounts of Rs1.70 billion to the LG department.
The aim of the project was setup a sewage water treatment plants and ‘Greater Water Supply Projects’ in Kohat, Swat and Abbottabad districts. The official report said that a total of Rs1.33bn were released to the LG department but it was directed to return this fund by June 30.
However, sources said that the local government department has not returned the fund yet, after which the finance department has once again asked the department to return the fund in view of the financial crisis. The finance department has also directed LG department to submit a progress of the ongoing projects.
