PESHAWAR: Foreign Aid agencies have provided 20.5 million US dollars loan to cash strapped Khyber Pakhtunkhwa (KP) province.
The provincial Finance Department has said that the KP government has achieved the already set targets on the ongoing development projects as a result, the province was a provided another installment of 20.5 million US dollars debt in mid-December.
After this approval, it took two in to transferring the funds and now two and a half million dollars i.e. Rs5.66 billion have been received by the provincial government.
The transfer of loan is considered a positive step for the province which is suffering from financial crisis. The fund will also be used for the release of development funds and grants, including salaries of employees. According to the sources of the Finance Department, due to the ongoing “cold war” between KP and the federal government, development programs of the province have been severely affected as the center has stopped the province funding since the removal of the Pakistan Tehreek-e-Insaf government through a no-confidence motion.
The province was also unable to pay salaries to its employees and was relying on loans from the State Bank and other commercial banks.
