PESHAWAR, Jan 10: The NWFP government has expressed severe reservation over shifting of Pak-China Economic Zone Project from Frontier province to Punjab and demanded of the federal government to remain stick to the original plan.

NWFP Minister for Industries Ahmad Hassan Shah conveyed reservation to this effect to Federal Minister Manzoor Ahmad Wattoo in a meeting held at Sarhad Chamber of Commerce and Industry (SCCI) here on Saturday.

The federal government had decided to set up an economic zone at Risalpur, 40 kilometres away from the provincial capital, in collaboration with the Chinese government. However, now the project has been shifted to Faisalabad because of deteriorating law and order situation in NWFP.

“We are not against Punjab but being elder brother it should not hijack our projects,” remarked Mr Shah. He accused Punjab Chief Minister Shahbaz Sharif of hijacking the said project, adding: “Till recent the project was to be executed in Risalpur but after Shehbaz Sharif’s visit to China it is now being shifted to Punjab.”

He asked the visiting federal minister to take up the matter with prime minister, president and Chinese authorities because what he claimed “the project is very crucial for the socio-economic development of this ill-fated province.”

SCCI president Sharafat Ali Mubarik presided over the meeting, where a number of businessmen apprised the minister of their problems.

Responding to various points raised on the occasion, Mr Wattoo announced that the federal government was going to hold a joint meeting of the business community with representations from the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) and all chambers to discuss problems confronting the business community and take measures for their resolution.

He informed the gathering that in first phase of the event, he was visiting the offices of the bodies of industrialists and traders in different cities of the country, while in the last leg of his initiative, the office-bearers of all chambers along with the FPCCI would be invited to meeting in Islamabad.

The proposed joint meeting of the traders and industrialists bodies would also be attended by federal ministers for commerce, finance and water and power, he said.

The problems of the business community, he said, would be put before the ministers concerned while the representatives of the business community themselves would also pinpoint their problems. The process in this regard, he said, would be completed in the current month.

The minister identified the current energy crisis, lawlessness and higher mark up rates as major problems being faced by the traders and industrialists of NWFP, saying solving or minimising those problems could make industrial sector effective in the province.

He said that ministry of industries was very effective and making day-night efforts for progress and development of the country.

The government, he claimed, was working on projects to overcome the problem of energy crisis, adding hydel power generation would be increased from the present 6,000MW to 8,000MW, while measures had also been initiated for increasing the power producing capacity of the Independent Power Producers.

The government, he said, had released funds in this regard decreasing the gap between supply and demand by 2,000MW in the country.

To a question, regarding flour mills, he said that wheat worth Rs100 billion had already been imported while the increased support of price of the commodity would also help improve the situation.

He also announced setting up of regional offices of Pakistan Steel Mills in Peshawar and Quetta, saying that preference would be given to the local iron ore.

The minister agreed with the demand of the president of SCCI for declaring NWFP as war affected area, saying the matter would be raised with both president and prime minister. He said that Risalpur Export Processing Zone would be converted into Reconstruction Opportunity Zone (ROZ).

Earlier, SCCI president Sharafat Ali Mubarik highlighted the problems confronting the business community of the province.