The private company operating the Bus Rapid Transit (BRT) has decided to cease its operation from June 7 (Wednesday) over the Khyber Pakhtunkhwa (KP) government’s failure to release its payments worth more than Rs750 million.

The operator had warned the provincial authorities of closing the services in a letter it sent on June 3 if the government had failed to pay the Rs754 million to the operator by today (Monday).

In the letter, the operator mentioned that it has been facing a delay in the payment of the amount for “three to four months”. It had also claimed the payment was being delayed despite the “availability of funds in TransPeshawar’s (TPC) bank account”.

“This delay has an adverse effect on the operational expenses (procurement of diesel, lubricants and parts, related to electricity and salaries) to the company for the BRT Peshawar operation,” the operator had said in the letter.

The operator had informed the government back then that it would continue to operate the service till Tuesday (tomorrow).

“If Transpeshawar (TPC) has not released the overdue payment of PKR 754 Million on Monday, we will be compelled to suspend the BRT Peshawar operation from Wednesday 7th June 2023 due to non-payment. Considering this non-payment has perpetrated severe financial stress on the company,” said the operator. 

The provincial government had stopped the payment to the operator as its lease agreement with the authorities for the Peshawar terminal expired in October 2022. The government is unwilling to release the dues as the company is yet to vacate the terminal.