GUJRANWALA, Aug 25 Development projects in the seven towns of Gujranwala have stopped since the (PML-N) provincial government declined to release special grants for the purpose.

The town administrations could not also utilise the development funds of millions of rupees allocated for 2009-10.

The district was divided into seven towns -- Khiali, Aroop, Qila Deedar Singh, Nandipur, Kamoki, Naushehra Virkan and Wazirabad -- following the local government election in 2005 despite a resistance by opposition parties.

The then provincial government decided that 60 per cent development funds would be spent through MPs and 40 per cent through nazims of the towns.

The town administrations were stopped from launching any development project in June 2008 when the PML-N government took over.

It was stated that the city district council didn't have funds for development in the budget for 2009-10 whereas each of the seven towns was allocated Rs300 million to Rs400 million.

The provincial government restrained the local institutions from launching any development as a result of which the funds had been lying unused for the last two months.

As the fate of local governments hangs in the balance, it is scandalous that the funds will be lapsed. Aroop Town Nazim Rao Ikram Ali Khan confirmed that the towns were virtually 'dead' since the PML-N took over the saddle in Punjab and curtailed powers of the town nazims.

Meanwhile, a special development committee's first session for launching new development schemes and resolving public problems was held here on Tuesday.