The Peshawar BRT bus transportation system is facing possible closure. This is because the government cannot afford to pay the five private companies responsible for managing different aspects of the public transport system. Daewoo Pakistan, which operates 244 buses serving 300,000 passengers in the provincial capital, is one of the affected companies. The government’s outstanding debt has increased from 450 million to 750 million rupees.
Lack of funds:
On June 1, the Daewoo management again appealed to the state government, expressing concern over the continuation of bus services due to lack of funds. They warned that non-payment would put serious financial pressure on operations. Daewoo has often discussed this issue with the government and with the latest request addressed to the caretaker Chief Minister Mohammad Azam Khan. Four other companies also demand Rs300 million from the government for their services. The outstanding amount now is Rs. 754 million, including monthly bills.
Suspension of the bus service:
These funds are very important for buying diesel, lubricants, and parts and cover the expenses such as electricity bills and salaries. The fulfilment of these obligations requires the timely payment of the payments specified in the contract. However, in case of delay, the bus service may be cancelled.
Peshawar BRT:
Transpeshawar, the subsidiary responsible for overseeing mass transit in the state, has failed to make the required payments despite repeated requests and reminders. Transpeshawar is over Rs.450 million in the account, but the company has not cleared the outstanding balance.
The bills settled soon:
According to another official: “The payments were delayed without justification because the contracts stipulated that about 90 percent of the bills sent should be settled within 10 days.” Affected companies typically rely on bank lines of credit to cover short-term liabilities, so long delays are a big challenge. If the backlog is not resolved soon, the Peshawar bus service may be suspended, affecting the daily commute of thousands of residents who use public transport.
Also Read: Orange Line BRT is ready for Karachi, with the launch date announced
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