KP allocates Rs2bn to clear District Development Plan dues

PESHAWAR: The Khyber Pakhtunkhwa government has made a special allocation of Rs2 billion to clear outstanding payments for locally initiated development projects under the District Development Plan (DDP).

The projects were launched during the tenure of former Chief Minister Mahmood Khan under a special development programme for Members of the Provincial Assembly (MPAs).

According to official sources, the programme was originally introduced as a three-year initiative and covered more than 14,000 development schemes proposed by lawmakers across the province. More than Rs60 billion has been spent on these projects so far.

Sources said the pace of development work slowed during the caretaker government’s tenure, delaying the completion of several schemes. The delays also led to a significant increase in construction costs.

Although most of the projects have now been completed, contractors are still awaiting payments because of the gap between the original project estimates and revised costs.

According to sources, the difference between the original and revised project costs has exceeded Rs9 billion. However, the provincial government has initially allocated only Rs2 billion to begin clearing the outstanding liabilities.

Officials and stakeholders said the current allocation would not be sufficient to settle all pending dues. However, they expressed hope that additional funds would be released during the current fiscal year to ensure full payment of contractors’ outstanding claims.