The Peshawar Bus Transit system is facing the possibility of shutting down. This is due to the inability of the government to pay five private companies responsible for managing different aspects of the public transportation system.
Daewoo Pakistan, which operates a fleet of 244 buses serving 300,000 commuters in the provincial capital, is one of the affected companies. Its unpaid balance from the government has increased from Rs. 450 million to Rs. 750 million.
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Four other companies are also demanding Rs. 300 million from the government for their services. On 1 June, Daewoo management appealed to the provincial government once again, expressing concerns about their ability to continue operating the bus service due to a lack of funds. They warned that non-payment has placed severe financial stress on their operations.
Daewoo previously raised this issue with the government on multiple occasions, with the most recent request addressed to the caretaker Chief Minister Mohammad Azam Khan. The outstanding amount owed has now reached Rs. 754 million, including invoices for several months.
These funds are crucial for purchasing diesel, lubricants, and parts, and covering expenses such as electricity and salaries. Timely disbursement of payments as stipulated in the contract is necessary for meeting these obligations. However, delays are likely to result in the suspension of the bus service.
TransPeshawar, the subsidiary responsible for overseeing mass transit in the province, has neglected to make the required payments, despite repeated requests and reminders. Although TransPeshawar has over Rs. 450 million in its accounts, the company has not cleared the outstanding payments.
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Another official stated that payments have been delayed without any valid reasons, as the contract stipulates that approximately 90 percent of submitted invoices should be cleared within 10 days.
Prolonged delays pose a significant challenge for the affected companies, as they typically rely on credit lines from banks to meet short-term liabilities. If the outstanding payments are not resolved soon, the bus service in Peshawar may be suspended, impacting the daily commute of thousands of residents who rely on public transportation.
Source: Pro Pakistani