ISLAMABAD, July 20: The uplift budget of Azad Jammu and Kashmir has been raised from Rs2.4 billion to Rs3.3 billion, including forex component of $421 million, during the current financial year.

This would enable the AJK government to strengthen communication and social infrastructures, including health and educational facilities.

AJK Prime Minister Sardar Sikandar Hayat Khan told Finance Minister Shaukat Aziz in a meeting here on Saturday.

The finance minister informed the AJK premier the World Bank had agreed to give an additional $20 million grant for the uplift of AJK community infrastructure. The grant would be available for four years at nominal service charges of 00.75 per cent, he added.

Pakistan government would pick up differential, if any, in exchange fluctuation rate of this amount, he said.

He also said that this additional amount would accelerate development work in Azad Jammu and Kashmir, and help provide social infrastructure at the gross roots.

The two sides also discussed hydro-electric potential of Azad Kashmir, which, according to an estimate, can produce over 500MW.

The finance minister proposed that the AJK government might explore possibilities of inviting the private sector to invest in this field to make Azad Kashmir self-reliant in power generation.

The issue of sovereign guarantees to provide facilities to private investors could be mutually worked out, he added.

He said the potential of tapping hydro-power generation would expedite economic activity, which in turn, would create jobs and promote the tourism industry.

Current allocations to the AJK were also reviewed in the meeting.