Tuesday, September 29, 2009

Trust to be set up for utilising US funding

PESHAWAR: The federal government has decided to set up a trust fund for development of the NWFP and Fata with the financial assistance of the United States as approved under the Kerry-Lugar bill.

The proposed ‘Trust Fund for Development of NWFP and Fata’ would be governed through a board of trustees that would decide projects and look after all their financial affairs, said NWFP Governor Awais Ahmad Ghani here on Monday.

The US Senate last week passed the Kerry-Lugar bill to authorise $1.5 billion in economic assistance annually for Pakistan over five years to offset the impact of ongoing war on terror on its economy and social service delivery.

The board of trustees will comprise representatives of federal and provincial governments and donor agencies, and inclusion of two representatives from the Sarhad Chamber of Commerce and Industry has also been recommended. The main office of the trust will be based in Peshawar.

The idea behind creation of the trust, the governor explained, was to ensure maximum utilisation of funds in the conflict-hit NWFP and Fata by avoiding lengthy process of project designing and funds disbursement.

‘Under this arrangement, at least 75 per cent of the funds will go to development projects of the NWFP and Fata,’ the governor said.

Mr Ghani was speaking at the launching ceremony of SCCI’s Trade and Industry Directory, which contains contact details of 3,000 entrepreneurs of Peshawar.

Besides others, Senator Ilays Ahmad Bilour, leader of Businessman Forum Pakistan, SCCI president Sharafat Ali Mubarik and vice-president Mohammad Ishaq were also present.

The governor, while responding to identical points raised by the participants, endorsed the SCCI demand of declaring NWFP as a war-affected province, urging the federal government to immediately announce a relief package for its economic revival.

‘The province and adjoining tribal belt has suffered because of militancy and now it is time for the federal government to allocate adequate resources for the reconstruction,’ he said.

Mr Ghani told the meeting that the federal government was serious in reconstruction of conflict-hit areas, particularly the Malakand division, and focus also was on initiating uplift schemes in Peshawar.

According to him, a project for extension of the Peshawar airport had been approved and the Civil Aviation Authority had released funds for land acquisition. The project would increase parking capacity of aircrafts from four to 10.

Likewise, three different sites had been identified in the Peshawar valley for establishment of a housing project under the Defence Housing Authority and steps were being taken for setting up Peshawar Business City at Katcha Garhi and a modern bus terminal, he said.

Mr Ghani said a committee under the chairmanship of federal finance minister with the NWFP governor and chief minister as its members had been constituted to dispose of financial affairs of the province on a war footing.

He also endorsed the SCCI viewpoint on Reconstruction Opportunity Zones and made it clear that the government would not approve the initiative unless the chamber’s reservations were addressed.

Earlier, Senator Ilyas Bilour, SCCI president Mubarik and vice-president Ishaq apprised the governor about the problems being faced by local businessmen.

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