LAHORE, July 31: District Nazim Amer Mahmood said on Wednesday the city government lacked funds for development. Unless the federal and the provincial governments came to its rescue, he said, it would be unable to do much besides paying the salaries of its staff.

Speaking at a post-budget press conference at the District Nazim House here, he said ther city government had so far received only a provisional grant of Rs3 billion issued by the Provincial Finance Commission and an octroi grant of Rs1 billion.

He said the city government was left with only Rs28 million for funding new development schemes after allocating Rs500 million for the completion of the ongoing schemes. Because of the acute financial stringency, he said, there was no allocation in the budget this year for union councils.

The Nazim said the city government had still to clear the liabilities incurred by the Metropolitan Corporation of Lahore. Over Rs200 million, he said, had been paid to the National Logistics Cell and the Frontier Works Organization during 2001-2. The outstanding liabilities amounted to Rs1.5 billion.

He said the city government had faced a similar situation at the beginning of the previous financial year but had been able to complete Rs1.8 billion development schemes during the year.

During the current year, he said, the government had decided to focus on water supply, sewerage and education and devolve the solid waste management system.

The construction of the Ring Road, he said, was being allowed on build-operate-and-transfer basis. The Rs500 million provided by the federal and provincial government for the project would be utilized only for land acquisition. The Ferozepur Road stretch between Qainchi Amar Sidhu and Kasur would also be built on BOT basis.

He said the Water and Sanitation Agency of the Lahore Development Authority had not revised water supply rates since 1998 despite the power tariff revisions that had increased electricity bills’ share in its budget from 30 per cent to 60 per cent.

He said the city government had submitted a Rs500 million project for federal government assistance for the construction of new sewage disposal drains in Harbanspura area. President Gen Pervez Musharraf, he said, had provided Rs360 million for water supply in the provincial metropolis last year and promised a Rs400 million grant for its roads and streets.

The Nazim said the Harbanspura Model Gowala Colony Project had been stuck up for the time being as those occupying plots on the basis of Rs500 chits issued by some former mayors had approached the high court. The city government, he said, was pursuing the case and hoped to win it.

He said the city government had started development of a food street between the Lahore Fort and Ali Park. The Old Anarkali food street, he said, was expected to be inaugurated in September. Work had also started on the cobblestone food street along The Mall opposite the Lahore High Court.

He said the city government also planned to beautify the approaches to the city.