No funds for employees' salaries

[Lahore_Real_Estate]

ISLAMABAD – The persisting financial crunch being faced by the Capital Development Authority (CDA) will further aggravate in the upcoming days since the State Bank of Pakistan has refused to pay an overdraft of Rs500 million to the authority that it had sought to pay salaries to its employees.
Earlier, the city managers floated a summary to SBP demanding Rs500 million overdraft in a bid to reserve six-month salaries of the authority’s employees.
It’s worth mentioning here the CDA pays Rs80 million per month to its employees in the head of salaries.
Grim financial problems have multiplied since the authority does not have enough funds to pay its employees the salary for this month and the city managers have decided to approach the SBP to resolve this issue but to no avail. The outstanding bills of the contractors engaged by the CDA for its various projects have reached an unprecedented level of Rs1.5 billion.
Though before this request, the city managers also requested the federal government for Rs4 billion bailout package to clear its liabilities and Rs1 billion on the account to pay the outstanding amount IESCO, but so far it has not received single penny from the federal government.
An official of the authority said that CDA was left with no other option than to sell its precious land to meet day-to-day expenses.
But already, CDA had received a weak response owing to a decline in real estate market. The revenue target fixed by the authority by selling its land for the year 2010-11 is Rs11.421 billion against the previous year 2009-10 Rs21.302 billion.