National Disaster Management Authority Chairman Lt-Gen Nadeem Ahmad told Dawn on Friday that the process had started in Mianwali (Punjab) and Thattha (Sindh) on Thursday and 400 affected families had been given compensation amounts. “The process will be extended to Badin and Karachi on Saturday,” he added.

Lt-Gen Nadeem said that amounts were being distributed strictly on production of 'Watan cards' issued by Nadra and the money could be drawn from banks. The process, however, could not take off in Khyber Pakhtunkhwa and Balochistan.

A meeting of the CCI, presided over by Prime Minister Yousuf Raza Gilani on Monday, had decided that the federal and provincial governments would share the preliminary amount of Rs40 billion for compensation.

Lt-Gen Nadeem said the federal government had released the first instalment of its share -- Rs5 billion. Punjab has given Rs2 billion and the three other provinces Rs1 billion each.

Mr Gilani also told reporters on Thursday that the federal government had deposited Rs5 billion in United Bank to pay out the first instalment. Asked about reasons for the delay in payment of compensation amount in Khyber Pakhtunkhwa, a spokesman for Chief Minister Amir Haider Khan Hoti said the CM was busy in distributing compensation cheques to the heirs of those killed in Peshawar, Nowshera and Charsadda blasts.

Senator Haji Muhammad Adeel told Dawn that the delay was because of the federal government's failure to coordinate with the province and provide the compensation amount. “The KP government has spared Rs17 billion out of its development expenditures to provide compensation to the affected people after Eid,” he said.

Senator Adeel said the Punjab government had started the process on its own and KP would also follow suit. He said his province had suffered more than the other provinces and it should be given priority in grants from the federal government.