Peshawar BRT May Shut Down as Govt Fails to Clear Dues

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.

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. 

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.

Follow ProPakistani on Google News & scroll through your favourite content faster!

Support independent journalism

If you want to join us in our mission to share independent, global journalism to the world, we’d love to have you on our side. If you can, please support us on a monthly basis. It takes less than a minute to set up, and you can rest assured that you’re making a big impact every single month in support of open, independent journalism. Thank you.

  • The temporary shutdown of the Peshawar BRT due to lack of funds is indeed a concerning situation. However, instead of completely banning public transport like the BRT system, it would be more effective to focus on finding alternative solutions. One such approach could be implementing measures to discourage the use of individual cars and promote the use of public transportation. By reducing the number of cars on the roads, we can significantly mitigate pollution levels and improve air quality in the city. Encouraging the use of larger buses with efficient emission control systems can further contribute to minimizing the environmental impact. It is crucial to prioritize sustainable transportation options while addressing the funding challenges faced by the Peshawar BRT. This will not only alleviate congestion but also lead to a cleaner and healthier environment for the residents of Peshawar.

  • Get Alerts

    Follow ProPakistani to get latest news and updates.

    ProPakistani Community

    Join the groups below to get latest news and updates.