The Defence Ministry is currently facing a serious financial challenge, as it struggles to compensate landowners for over 13,000 acres of land acquired in Nowshehra. The land, initially intended for military training, was de-notified due to what officials described as an excessively high cost of Rs. 75 billion.
However, the de-notification faced legal backlash. In January 2024, the Supreme Court of Pakistan upheld an earlier decision by the Peshawar High Court, declaring the move to de-notify the land acquisition as unlawful. The court’s ruling made it clear that the government must follow through with the original acquisition and pay the due compensation.
Despite the court’s clear stance, the Ministry of Defence has been unable to release the necessary funds. Sources reveal that the Finance Ministry has yet to allocate the money, citing tight budgetary constraints and an ongoing financial crunch affecting several departments.
This delay has left landowners in a state of uncertainty. Many are demanding immediate action, arguing that they have been kept waiting for too long. They fear that the delay in payments could continue indefinitely if the financial situation does not improve.
On the other hand, officials within the Defence Ministry insist they are fully committed to resolving the issue. They claim that discussions with the Finance Ministry are ongoing and that they are actively pushing for the early release of funds.
As the deadlock continues, public pressure is mounting on both ministries. Observers believe that unless a breakthrough is achieved soon, the government may face further legal and political challenges in handling land-related disputes.