ISLAMABAD The Federal Government has failed to release remaining 70 percent of Rs 107.52 billion to the Government of Azad Jammu & Kashmir, which was approved for the Public Sector Development Programme (PSDP) in AJK for the fiscal year 2009-2010, sources told TheNation on Thursday. According to well-placed sources in the AJK Government, high-level talks between AJK and the Federal Governments have been held regarding the release of these funds. Despite tall promises of the Federal Government, it has failed to release the funds so far. The sources alleged that the Federal Government was giving tough time to the AJK Government. When contacted, PRO of the Prime Minster AJK, Raja Kafeel said that several development schemes were launched by the AJK Government in the beginning of this fiscal year and work on several projects and schemes were also started but unfortunately, it could not be completed because of shortage of the funds. These schemes are still incomplete, as the contractors do not have huge funds to complete these projects, he said. The AJK Government has raised this issue with the Federal Governments authorities but they did not release the funds yet, he further said. To a question whether it would be possible for the AJK Government to fully utilise these funds before the upcoming budget in June 2010, he said, We have already given the tenders the projects and remaining would be done soon after the funds are released. It would be implemented in a transparent way. To another question whether the Government has made the necessary arrangements to implement the funds in short time span transparently and fairly said, We have huge projects in the middle of construction. New projects would be tendered as per standards of the developments, he assured. When this scribe contacted Secretary Ehtasham of the Ministry of Kashmir Affairs for his comments in this regard, he simply refused to talk over the issue. Talking to TheNation Planning Chief Ministry of Kashmir Affairs M Ashraf Cheema said that Rs 107.52 billion was fixed as 'block allocation for the AJK-PSDP. However, 30 percent of this allocation has been released to the AJK Government. He made it clear that rest of the funds could not be released due to the financial constraints. To a question he said, The Federal Government is sincere in releasing remaining amount to the AJK Government and it will be released to AJK very soon. When contacted, President Pakistan Peoples Party (PPP) AJK President Chaudhry Majeed Said, Federal Government will release remaining amount in few days. The utilisation of the funds in the short time of span will be a test for the fragile AJK Government. We will keep a check on the AJK Governments performance when this amount will be being implemented.