November 09, 2007	Friday	Shawwal 27, 1428

PESHAWAR, Nov 8: The clashes between security forces and militants in Swat have badly affected trade activities there, according to official sources.

“Trade activities in the scenic Swat valley have declined by 90 per cent during the past two months,” sources in the provincial offices of the Board of Investment said on Thursday.

The worst-hit businessmen were hoteliers, who had suffered losses of Rs800 million since the beginning of the conflict, they said. Trade activities could dwindle further if the security situation did not improve. Most of the people, they said, had moved their businesses from the crisis-hit district.

“The ongoing crisis has rendered about 3,491 people jobless. And more will lose their jobs (if there’s no improvement in the situation),” they added.

Citing reports separately compiled by the provincial directorate of industry and the Board of Investment, they said the district had 268 registered industrial units.

Fifty-four of the units had been closed five years ago for reasons other than security and the running units had an investment of Rs810.536 million. Officials said only four of the 11 flour mills in the district were functioning.

They said Swat attracted about 150,000 visitors a year, which included foreigners. During the past five years, they said, the district had made tremendous progress, especially in the area of tourism.

“But now, the situation is going from bad to worse and a day will come when their will be no visitor and all industrial units and hotels and restaurants will be closed.”

They said Swat had more than 500 hotels and restaurants, where people had invested millions of rupees. Being a tax-free zone, they said, Swat attracted investors from other provinces too.

According to reports, during the past few months the security situation had forced investors to wind up their businesses and move to other cities. The officials said the situation obtaining in Swat would affect the national economy.

They said the district had modern manufacturing units for sports goods, cosmetics and plastics goods. They said local weavers prepared woollies and warm clothing, which were supplied to different areas.

Among other local products are poultry and honey. Apart from local products, huge quantities of Chinese goods were transported through Swat to other parts of the country.