
RCB cuts spending, hikes water charges
The cuts were primarily made in the allocations for miscellaneous expenses and maintenance & repair works.
According to details, the Rawalpindi Cantonment Board had initially passed the Rs7.436 billion budget in a board meeting for the 10-ward densely populated cantonment area and submitted it to the Director of Military Lands and Cantonments, Rawalpindi Region, for final approval.
The approved budget includes: Rs3.208 billion for salaries and pensions (approved without any deductions), Rs1.542 billion for miscellaneous expenses (after a Rs34 million cut), Rs600 million for general works (approved in full), Rs385 million for maintenance and repair (after a Rs59 million cut), For comparison, the authority had imposed Rs800 million in cuts in the previous 2024-25 budget. According to Cantonment Board sources, the board achieved 86% performance against last year's budget targets.
Despite the new budget, residents continue to face serious issues in the cantonment area — particularly in the densely populated back-end localities, which contrast sharply with the well-developed front areas. Problems include broken roads and streets, lack of street lighting, poor sanitation, a faulty sewerage system, encroachments, unregulated commercial activity in residential areas, and widespread illegal construction.
The most pressing concern remains the lack of access to drinking water. Due to the absence of a proper water supply network, many residents are forced to install private borewells at their own expense.
Adding to public frustration, the Cantonment Board has now increased water supply charges and sanitation taxes by 100% to 200% in the post-budget board meeting.
In protest, elected members walked out of the session and announced they would challenge the decision in the Lahore High Court, Rawalpindi Bench.
RMC prioritises uplift projects
Our correspondent
The Rawalpindi Municipal Corporation (RMC) approved an annual budget worth Rs8.80 billion for the fiscal year 2025-26, featuring a surplus balance of Rs442.5 million.
Municipal Corporation Administrator and Rawalpindi Commissioner Engineer Aamir Khattak sanctioned the budget after detailed discussions on the proposals presented by Chief Officer Imran Ali.
According to the official budget figures, the total resources — comprising last year's closing balance, the opening balance for the new fiscal year, and projected revenue collections — stand at Rs8.80 billion.
Of this, Rs2.30 billion has been allocated for non-development expenditures, including salaries and pensions, with a special provision of Rs800 million reserved exclusively for pension payments. The development budget has been allocated at Rs6.04 billion.
Key allocations under the development budget include Rs1.92 billion for ongoing development schemes,
Rs1.90 billion for new annual development programmes (ADP), Rs2 billion earmarked for road carpeting and infrastructure rehabilitation, Rs176.1 million designated for sports and cultural activities.
During the current fiscal year, the Municipal Corporation plans to prioritise the completion of several ongoing and new development schemes. These include carpeting of city roads, construction and repair of streets, upgrades to the drainage and sewerage systems, construction and maintenance of nullahs, installation of streetlights, and establishment of an underground cable network in Raja Bazaar and Commercial Market.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Express Tribune
18-07-2025
- Express Tribune
Govt plans to build Chenab dam amid IWT row
Listen to article The International Monetary Fund has rejected Pakistan's proposal to impose 1% water storage cess on goods to build mega dams and instead suggested to increase the 18% standard sales tax rate for funding any enlarged size of the federal development programme. The development came amid an anticipated revision in the cost of the Diamer-Basha dam and needing funds to build a new Chenab dam over the Chenab river, which will require at least additional Rs800 billion, according to the government sources. Official sources said that the global lender did not endorse the proposal to impose water storage cess, which the government wanted to introduce on every taxable product produced in the country, except electrical energy and medicines. The cess has been proposed to fund two mega water storage dams and build a new one as a solution to deal with Indian water aggression. The development pushes the government in a tight spot, which was willing to increase the tax burden but only in a fashion that would ensure that 100% of the collection stays in the federal kitty instead of being shared with provinces. In case of cess, the government will have the full right on the collection while sales tax would become part of the federal divisible pool. The government had sought the IMF's permission to impose the new tax after majority of the provincial governments showed reluctance to finance the early completion of the Diamer-Bhasha dam and the Mohmand Dam. The government had proposed that the provinces should pick half of the Rs716 billion cost of the Benazir Income Support Programme and the Rs358 billion fiscal space will be used to build dams at a faster pace to deal with Indian aggression. The provinces refused. The spokesman of Ministry of Finance Qumar Abbasi did not comment on the development. The sources said that the IMF has many objections to the water storage cess proposal, including the legal and governance challenges. They added the Fund was of the view that any special levy reduces the flexibility in the budget and the sales tax can give such flexibility. Moreover, the IMF was not comfortable with the idea of giving the control of the new cess to the Water and Power Development Authority (Wapda), they added. The IMF had earlier asked the government to fund these dams from the Rs1 trillion worth Public Sector Development Programme (PSDP). But the government was not inclined to get more money from the PSDP, which this year was focusing more on the needs of the coalition partners than having mega strategic projects as national priority. The sources said that the IMF informed Pakistan that if it wanted to get more money for development spending then it can consider increasing the rate of sales tax. The standard sales tax rate is 18% while the government also charges 3% extra sales tax rate in case a good is sold to an unregistered person. The government's earlier decision to increase the petroleum levy rate to give electricity subsidy and fund a road in Balochistan has led to abnormal increase in prices of diesel and petrol since July 1st. The landed cost of diesel is Rs177.89 per liter and petrol's Rs168.73 per liter, excluding all types of margins, rupee depreciation impact and taxes. However, after adding these additional costs, the high-speed diesel price is set at Rs284.35 and petrol at Rs272.15 per liter. Seven years ago, the government had approved the Diamer-Bhasha dam at a cost Rs479 billion and Mohmand at Rs310 billion. The sources said that the revised estimates suggest that the Diamer Basha dam cost may skyrocket to over Rs1.1 trillion, an addition of around Rs620 billion. The exact cost will be determined when the Planning Ministry receives the revised documents. Even against the original Rs479 billion cost, the government needed Rs365 billion more to complete the work. For this fiscal year, only Rs25 billion has been allocated for the Diamer Basha dam, which is even less than last fiscal year. Likewise, the Mohmand dam was approved at a cost of Rs310 billion seven years ago and it still requires a minimum of Rs173 billion more at the old price. Only Rs35.7 billion has been allocated for the new fiscal year. Likewise, the government is planning to build a dam on the Chenab river with a cost of about Rs220 billion. This requires an additional Rs800 billion for Chenab dam and Diamer-Basha dam. After adding up the remaining financing requirements, the government needs a total Rs1.35 trillion for just these three dams. India has threatened to cut water supplies after it held the Indus Waters Treaty (IWT) in abeyance in violation of the treaty provisions and in the breach of the international law. Islamabad has plainly told India that any such act would be considered as an act of war. For this fiscal year, the government has reduced the water sector development budget by 28% to Rs133 billion. Now it wants to offset this by introducing a new tax. One of the options is that instead of levying a new 1% cess or increasing GST rate, the government should amend the GIDC law and divert the already collected much over Rs400 billion money towards building dams. The Ministry of Water Resources has informed the government that it would take 15 years to complete the Mohmand dam and over 20 years to finish work on the Diamer-Bhasha dam at the current pace of the budget allocations. Ahsan Iqbal, the federal minister for Planning and Development has already ruled out creating any further space in the PSDP to fund the large projects. The government has held meetings this week in the Planning Ministry and the Prime Minister's Office to finalize a strategy for funding other projects, which can be completed and to be inaugurated by Prime Minister Shehbaz Sharif this year.


Business Recorder
16-07-2025
- Business Recorder
KAPCO approves Rs800mn sale of gas turbines to local steel maker
Kot Addu Power Company Limited (KAPCO) has received shareholder approval to sell its Gas Turbines GT-3 and GT-4, along with associated components, to Rizwan Steel (Private) Limited for Rs800 million. The power producer disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Wednesday. 'The consent of shareholders of Kot Addu Power Company Limited be and is hereby accorded to the disposal of plant and machinery of the company comprising Lot-1 (Gas Turbines (GT-3 and GT-4)) along with associated parts and components to Rizwan Steel (Private) Limited at a price of Rs800 million, subject to requisite approval(s) as per details given in statement of material facts,' read the notice. KAPCO informed that Shahab Qader Khan, Chief Executive and/or Adolf Anthony Rath, company secretary, are authorised to dispose of the plant and machinery and to act on behalf of the company 'in doing and performing all acts, matters, things and deeds to implement the disposal and the transaction contemplated by it'. Last month, KAPCO signed a Tri-Partite Power Purchase Agreement (TPPA) along with the schedules with the Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) and National Grid Company of Pakistan Limited to govern electricity sales from KAPCO's power plant. Incorporated in Pakistan on April 25, 1996, as a public limited company, KAPCO's principal activities are to own, operate and maintain a multi-fuel fired power station with fifteen generating units with a nameplate capacity of 1,600 MW in Kot Addu, Punjab. The company sell the electricity produced to a single customer, the Water and Power Development Authority (WAPDA) under a Power Purchase Agreement (PPA).


Express Tribune
15-07-2025
- Express Tribune
PAC orders blacklisting of eight NGOs
The Public Accounts Committee (PAC) of the Sindh Assembly has ordered the blacklisting of eight non-governmental organisations (NGOs) for failing to provide audit records, invoices, and expenditure details related to over Rs800 million in funding under the Community Development Programme. The decision came during a PAC meeting on Tuesday, chaired by Nisar Khuhro, with committee members Khurram Karim Soomro, Makhdoom Fakhar-uz-Zaman, and Taha Ahmed in attendance, alongside Planning and Development Secretary Sajjad Abbasi and other officials. The meeting reviewed audit paras from 2019 and 2020 related to the Planning and Development Department. Officials disclosed that 16 NGOs received funding in 2018 for health, skills development, and education projects. However, eight of them have not submitted any audit documentation. PAC Chairman Nisar Khuhro directed the Social Welfare Department to cancel the registration and licenses of these NGOs. During the session, another issue surfaced involving SRSO, which reportedly charged 8-10% interest on Rs10,000 micro-loans given to widowed and impoverished women in 100 union councils across Kashmore, Jacobabad, and Shikarpur - despite funds being allocated as interest-free under the UC-Based Poverty Reduction Programme. A letter submitted by SRSO's CEO acknowledged the interest but claimed it was mistakenly documented in the minutes, clarifying that loans were issued through village organisations. The PAC ordered a fact-finding probe into this alleged malpractice. Separately, the PAC was informed that SRSO had not yet returned Rs380 million in interest earnings to the government from the Rs9.67 billion it received for projects in six Sindh districts between 2018 and 2024. SRSO's CEO stated the funds were intact and would be returned once a formal request is made by the Planning Department. PAC directed a fact-finding investigation into SRSO's spending and retention of the interest amount. The committee also reinstated Pervez Ahmed, the suspended Project Director of the People's Poverty Reduction Programme, after he apologised for the delayed audit submission.