PESHAWAR, June 20: Local bodies in Peshawar are likely to face financial problems in coming months as major portions of funds meant for development schemes have been converted into utility bills.

A source in the city government told Dawn that over Rs135.3 million from the budget of the District Council of Peshawar had been transferred into accounts of the Peshawar Electric Supply Company to adjust utility bills of Town-I.

He said the situation in Town-I was more serious, but officials concerned had failed to raise sources of income. The financial problems, he said, had so worsened that even payment of monthly salaries to employees had become difficult. He said last month’s salaries were paid with a delay of 10 days and that also when the 2,200 employees held protest demonstrations and burnt tyres on roads.

The source said the 20 per cent increase in salaries and other allowances in the recent budget had further aggravated the situation, adding that the financial crisis could be judged from the fact that most of vehicles meant for sanitation were out of order and they could not be repaired due to lack of funds.

He said the town was yet to clear its fuel bills of previous months and filling stations had almost stopped supply of fuel to its vehicles.

Town-II convener Mr Israrullah said the town had no regular source of income, but the town council had made efforts to give various contracts on raised bids.

He said most of the town areas were backward and needed sufficient funds for development programmes, calling upon the government to sanction special funds for the town to bring the backward areas at par with developed ones.

“Despite our affiliations with different political parties we always serve the people irrespective of their associations and areas,” he said.

Despite several tries, Town-I Nazim Shaukat Ali could not be contacted on telephone for his comments.

Peshawar District Nazim Ghulam Ali, when approached by Dawn, said efforts were being made to get back the amount of Rs135.3 million adjusted in power bills for Town-I, from the provincial government.

He said the local bodies had very limited resources and they would not be able to initiate mega projects in the district, saying efforts would be made to get special funds allocated for mega projects in the city.

Meanwhile, the district nazim in a statement appealed to NWFP Chief Minister Ameer Haider Khan Hoti to allocate special funds for various schemes in the district and solve problems of the people.

The project of water supply from the Warsak Dam to parts of the city and different road schemes needed urgent attention of the provincial government, he said.