There is a chance that the Peshawar Bus Transit system will close. This is because the government is unable to pay the five private companies in charge of overseeing various facets of the public transportation system.
One of the impacted businesses is Daewoo Pakistan, which runs a fleet of 244 buses for 300,000 commuters in the provincial capital. The government’s unpaid balance has increased from Rs. 450 million to Rs. 750 million.
For their services, four additional companies are asking the government for Rs. 300 million. On June 1, Daewoo management sent a second appeal to the provincial government, warning that they might not be able to continue running the bus service due to a lack of funding. They issued a warning that the lack of payment has severely strained their operations’ finances.
Daewoo has previously requested that the government address this matter, with the most recent request going to interim Chief Minister Mohammad Azam Khan. The total amount still owing, including invoices from several months, is now Rs. 754 million.
These funds are essential for paying for costs like electricity and salaries as well as for buying diesel, lubricants, and parts. To fulfill these obligations, timely payment disbursement is required by the contract. But the bus service will probably be halted if there are delays.
Despite numerous requests and reminders, TransPeshawar, the subsidiary in charge of managing the province’s mass transit, has failed to make the necessary payments. Despite having more than Rs. 450 million in its accounts, TransPeshawar hasn’t paid the bills that are still due.
Another official claimed that the contract required roughly 90% of submitted invoices to be paid within ten days and that payments have been delayed without any justification.
The affected companies face a lot of difficulties because they typically rely on bank credit lines to cover short-term obligations. The daily commute of thousands of residents who depend on public transportation in Peshawar may be affected if the unpaid bills are not soon resolved.
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