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KP govt to provide funds for militancy-hit areas

Posted on: Mon June 14, 2010

PESHAWAR: The Khyber Pakhtunkhwa government on Saturday vowed to divert funds from its Annual Development Programme (ADP) if the international community failed to provide assistance for the rehabilitation of the militancy-hit Malakand division.

Taking questions from the media persons at the post-budget press conference at the Cabinet Room of the civil secretariat, provincial finance minister Humayun Khan dispelled the impression that Hazara division was ignored in the budget for the fiscal 2010-11. He said the budget having development outlay of Rs69.3 billion had provided equal share to all districts and divisions.

Flanked by Khyber Pakhtunkhwa government s spokesman and Information Minister Mian Iftikhar Hussain, Additional Chief Secretary Ghulam Dastageer and Secretary Finance Sahibzada Saeed, the finance minister said that as a result of the NFC Award, the federal government had transferred an increased share in resources to the province and dropped various Public Sector Development Programme projects.

 However, the federal government still funded a number of projects under the PSDP. The Centre raised the share of the province from Rs 220 billion to Rs 430 billion in the NFC Award and our province will now complete the PSDP projects with its own resources, he explained.

Humayun Khan said the chief minister had formed a committee to monitor the devolution of the departments of the concurrent list to the province. To a question, he said the government had completed damage-assessment in militancy-hit Malakand division and about Rs 87 billion would be needed for reconstruction and rehabilitation work. He said Rs22 billion were expected and the province has received Rs 12 billion so far.

The Khyber Pakhtunkhwa government, he pointed out, is also waiting for the Rs29 billion pledged by foreign donors. He said the federal government had already pledged Rs15 billion for the post-conflict rehabilitation and reconstruction of the Malakand Division.

Mian Iftikhar said the Awami National Party-led provincial government attached top priority to the Malakand Division and it would reallocate its own resources from the ADP if foreign assistance didn t materialise. He dispelled the impression that Hazara Division was ignored in the budget and said equal share was provided for Hazara s uplift.

The additional chief secretary gave details of the ongoing and new projects allocated to the five districts of Hazara including the semi-tribal area of Kala Dhaka. About the additional burden on the provincial exchequer due to the raise in salaries of government employees announced in the federal budget, Secretary Finance Sahibzada Saeed said the Khyber Pakhtunkhwa government was taking steps to retire costly loans to lessen pressure on expenditure portfolio and a comprehensive strategy was being worked out for the purpose. He said the political leadership had decided not to seek loans, though the province would take credit if it became inevitable. At the moment, he stressed there was no need to take loans. He added that about 9281 jobs would be created during the next fiscal year.

Regarding fears about political favouritism in the loans distribution under the proposed Rs1 billion Bacha Khan Khpal Rozgar scheme, Mian Iftikhar said every citizen was eligible for the interest-free loans of Rs 25,000 to Rs 100,000 for starting self-run businesses. Thirty percent of loans will be availed by females in the province, he said, stressing that it was wrong that ruling party workers would be given loans.

To a question about the allocation of Rs 23 billion for the police, Iftikhar Hussain said the amount would be spent to strengthen the police force for maintaining peace as development cannot take place unless the province became peaceful.

Responding to a question about incentives for the industrial sector in the provincial budget, Humayun Khan said Prime Minister Yousuf Raza Gilani had announced a support package for traders and industry but its implementation was delayed due to some reasons. He said he would soon take a delegation of traders to Islamabad to take up the issue with the federal government.

Courtesy : The News