Metro Bus service: Federal, Punjab governments lock horns over subsidy

21 Oct, 2015

Punjab government has opposed Prime Minister Nawaz Sharif''s decision to share the operational cost of Rawalpindi-Islamabad Metro Bus service with the province on an equal basis. Sources in Capital Development Authority (CDA) said that the Prime Minister on a summary moved by Ministry of Finance decided that the subsidy of operational cost of metro bus service will be picked up by federal and provincial governments equally. They added that the provincial government, which was fully aware of the decision, did not raise any objection at the time of approval of the subsidy.
The bus service was operationalized in June, 2015 and the Punjab government wrote a letter to the federal government in July, 2015 requesting that the subsidy of the bus service should be shared between the federal and provincial government on the basis of length of metro bus service track and not on an equal basis.
The length of metro bus service in Islamabad is greater its track in Rawalpindi, and if operational cost is decided on the basis of length the quantum of subsidy on the part of the federal government would be higher compared to the Punjab government. Sources revealed that this could erupt in a dispute especially as the project was primarily conceived by the provincial government and not the federal government.
They said the estimated operational cost of the metro bus service is Rs 2.8 billion per year and the total per year income of the project is around Rs 766 million and thus it requires a hefty annual subsidy of around Rs 2 billion. Rawalpindi contains 8.6 kilometres (km) of metro bus track and 10 stations, while a 14.6km corridor and 14 stations fall in the capital. "If the subsidy for operational cost is decided according to the request of Punjab government, the federal government will have to pay 60 per cent, or Rs 1.2 billion, of the total subsidy, with Punjab contributing the rest," sources added.
Sources said it is the federal government which pays the subsidy to CDA which works as the conduit. The Cabinet Division sent Punjab government''s letter to CDA''s finance wing around 20 days ago for a response, they said. The Authority''s finance wing informed the Cabinet Division that the subsidy earlier decided was at the ratio of 50-50; however if the government wants to give a higher share to Punjab government then it is within its discretion.
Meanwhile, a police official said that Rawalpindi police have registered an FIR under section 322 of Pakistan penal code (PPC) against the contractor of metro bus project on the complaint of Ghulab Deen, the uncle of Nisar Ahmed, 25, who died after an unfinished portion of metro bus bridge fell on him in the limits of Cantt police station. He said the deceased belongs to Azad Jammu Kashmir (AJK) and was an employee at a petrol station in Pirwadhai. "He was on his way to work when the incident occurred," he said.

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