PESHAWAR: The government of Khyber Pakhtunkhwa (KP) has decided to implement the same account system as Punjab, developed in collaboration with the World Bank, to overcome financial difficulties.
According to sources with first hand information of the matter, According to sources, more than 50 of 129 Tehsil Municipal Administrations (TMAs) in the province are facing financial difficulties and cover all their ongoing and developmental expenses through PLAs.
“The Local Government Department decided to introduce the Account 5 system for the Local Council Board after the Accountant General of Pakistan raised objections to Personal Ledger Accounts (PLAs) in KP,” sources added.
They said that only two PLAs counts in KP, including the Local Council and Peshawar High Court (PHC), are currently being extended for three months due to the AGP’s objections, but in case of no extension funds transferred to all TMAs would be blocked.
It may be mentioned here that the KP government transferred Rs16 billion annual for ongoing and development expenditures but none of the TMAs were provided with the funds.
Earlier, the provincial government wanted to introduce a single treasury account system which could not be introduced due to opposition from the local council.
According to Local Council Board sources, the letter sent to the Local Government Department said that the PLAs of all TMAs would be frozen again on December 31.
It should be noted that if the PLA of TMAs are not extended, they will be frozen on January 1 and will not be able to use grants given by the provincial government.
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