RAWALPINDI, March 17: Development works in the district have come to a standstill following refusal by contractors to take up new projects. Tenders for different projects worth billions of rupees have been floated repeatedly but the contractors are keeping themselves away.

These projects relate to the Annual Development Programme, special allocations announced by the government and those initiated by the defunct Zila Council.

The contractors are demanding a 100-110 per cent increase in the scheduled rates, saying that the existing rates were insufficient in view of massive increase in the cost of construction materials.

Besides, they are seeking restoration of special premium for Rawalpindi division. It is feared that if the situation persisted a large amount of development funds would lapse at the end of the current financial year, which is drawing nearer.

According to the indications given by the government, it is being expected that the government may allow a 70 per cent increase shortly. The approval of the finance department in this regard is being awaited and contractors alleged that the department officials were dragging their feet on the issue.