LAHORE, Aug 30: Chief Minister Pervaiz Elahi has said the government is encouraging industrialization to overcome the problem of unemployment.

After performing ground-breaking ceremony for the development of the Sundar Industrial Estate, some 25km from here, on Monday, the chief minister said the government was encouraging industrialization for creating job opportunities because it could not provide employment to all people.

He said the Sundar Industrial Estate would prove a milestone in the history of the province's development. The Bank of Punjab would provide loans for the establishment of industrial units in the estate while other commercial banks would also be asked to provide financial assistance to industrialists.

He said the plots in the estate would be allotted on merit. A ballot would be held for allotment in case the applications exceeded the number of plots. The government would compensate the landowners, whose area had been acquired for the estate at lesser price, he added.

He said the industrial estate would be developed by the Punjab Industrial Estates Development and Management Company, set up with a seed money of Rs1 billion for new industrial estates and upgrade of infrastructure in the existing ones.

The chief minister said the company had already started upgrading infrastructure at the Multan Industrial Estate and was making preparations for the Kot Lakhpat estate's improvement.

The Faisalabad Industrial Estate Development and Management Company had been established with a seed money of Rs1.5 billion and over 3,400 acres acquired near the motorway for the development of another industrial estate.

He hoped that job opportunities would be created in the province with the development of the new industrial estates during the next three years. Pervaiz Elahi said his regime had removed the difficulties being faced by the government with respect to social security and labour inspections.

The government was also anxious to boost exports from the province and had provided land for the development of the Lahore Expo Centre. Chief minister's advisor on new initiatives Jehangir Tareen said the development of the Sundar Industrial Estate was an effort to bring Pakistan on par with countries like Malaysia.

The provincial government, he said, was making all possible efforts for bringing down the cost of running business. He announced that the ground-breaking ceremony for the development of the Faisalabad Industrial Estate would be held very soon.

The Punjab Industrial Estate Development and Management Company chairman said the estate would be developed over 1,500 acres in two phases. The company would develop 660 plots of half to five acres for the allotment at the rate of Rs35,000 per acre.

As many as 286 plots would be developed in the first phase at an estimated cost of Rs1.1 billion. He said the industrial units in the estate would create 60,000 direct and 600,000 indirect job opportunities.