PESHAWAR, Dec 31: Finance Minister Shaukat Aziz has assured the NWFP that its grievances against Wapda on the net hydel profit issue will be resolved through arbitration, says a handout.

This assurance was given by the finance minister at a meeting held with Chief Minister Akram Khan Durrani at Islamabad on Wednesday, according to the official handout issued by the provincial government.

An arbitrator of high integrity will be nominated by the federal government shortly to help the two sides settle the contentious issue that has been hampering their working relationship since long. The provincial government and Wapda, according to the handout, will also nominate one representative each to encompass different aspects of the issue.

The NWFP wants payment of net hydel profit on the basis of the formula determined by a special committee in late 1980s. Besides, the provincial government has a Rs345 billion claim against Wapda since 1973-74.

The two discussed a wide range of issues pertaining to the NWFP's public and private sectors, including matters relating to the forthcoming National Finance Commission award, establishment of a customs checkpoint at Ghulam Khan in Fata, import of Afghan timber via Shahi bin Shahi in the Samar Bagh area of Dir district and fresh recruitments in the Frontier police.

The finance minister told Mr Durrani that the next meeting of the NFC would be held at Quetta on Jan 18-19 to discuss the stance taken by the provincial governments. He hoped that it would provide the base for finalizing the award before the March 31 deadline.

The chief minister said the provincial government had already taken steps to facilitate the customs checkpoint at Ghulam Khan. The government had given a building to house the customs officials to put an end to the rampant pilferage and illegal flow of goods from Pakistan to Afghanistan and vice versa, he added.

The chief minister highlighted the importance of taxing the Afghan timber through a regulatory mechanism and hoped that it would bring billions to the exchequer if such a mechanism was put in place.

Mr Aziz agreed that all obstacles in this regard would be removed. Mr Durrani reminded Mr Aziz of the prime minister's consent for a 50 per cent increase in the police force of the province under which 5,000 police personnel would be recruited this year and another 10,000 during the next fiscal year.

He also asked the finance minister to take up the Dir Kohistan upland development project with the European community. The federal finance minister assured him that the European Union would be contacted for the revival of the project.