HARIPUR, March 12: Local contractors have called off their seven-month-old strike after government departments assured them of a 10 per cent increase in rates.

Announcing this at a meeting here on Thursday, Government Contractors Association president Tahirur Rehman said about 150 registered contractors in Haripur had not been contesting the tenders floated for development projects since July 2003 to protest against the government's reluctance to transfer the district to schedule No 3 from schedule No 1.

The contractors' boycott delayed over 100 schemes worth Rs265 million. Prominent among these projects are government girls degree college Ghazi, extension of Khanpur hospital, tehsil headquarters hospital Ghazi, government girls college Khalabat Township and Pir Sohawa road.

Mr Rehman said rates of cement, steel, gravel, bricks, etc. had shot up during the past three years, but the government did not pay the contractors according to the rates fixed under schedule No 3 in 1999.

Describing the decision of placing Haripur in schedule No 1 as unjust, he said hilly areas constituted 60 per cent of the district where the rates were being offered to contractors were 25pc to 30pc less.

He told the meeting that the government departments would ensure a 10pc increase in the rates of schemes to be launched in future. He said the department heads were also given autonomy for an additional 5pc raise in rates.