PESHAWAR, Aug 1: The provincial finance department has unfrozen local funds for a month in order to enable the Peshawar city district government to pay salaries to its municipal staff, officials said.

Sources in the provincial local government and rural development department said that the finance department had authorized the city district government to withdraw money from local funds to pay salaries for the month of July to its contractual staff.

A senior official said that the provincial government was working out modalities to combine local funds and district accounts into a single statement from the next month.

He said the accountant-general office would finalize the report by end of this month to regularize salaries of the municipal staff and accounts of the city district government.

The National Reconstruction Bureau (NRB) had issued directives to the provincial government to create a joint account of local funds and district accounts to minimize discrepancies.

Instead, the NWFP government froze local funds, which affected activities of the district governments across the province.

MMA-NAZIMS’ DISPUTE: The Muttahida Majlis-i-Amal (MMA) government and the Nazims of all the 24 districts in the province are heading for a reconciliation as both sides have decided to follow the Local Government Ordinance (LGO) 2001.

This was decided in a meeting held between NWFP Minister for Local Government and Rural Development Sardar Mohammad Idrees and the district Nazims’ action committee in Mansehra on Thursday.

The minister said that the meeting ended on a positive note and major reservations of the district Nazims had been removed. District Nazim Nowshere Pervez Khattak led the action  committee in the meeting.

All the 24 district Nazims in the province had sent their resignations to President Gen Pervez Musharraf in June, accusing the MMA government of violating the law and intervening in the affairs of the district governments.

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