MINGORA, Jan 12: The federal government has decided to launch a Rs4 billion development package in the violence-hit Swat valley.

Well-informed sources told Dawn that the Pakistan Army would provide Rs1 billion, while the remaining Rs3 billion would come from the federal government.

The funds will be spent on the construction of dual-roads on both banks of Swat river from Chakdara to Kalam, rebuilding of damaged houses, compensation to civilians killed or inured during the military operation, creation of new jobs and development of hotel and tourism spots.

The army in collaboration with the locals would supervise the projects, the sources said, claiming that the area people had requested the government not to hand over the development schemes to parliamentarians, nazims, NGOs or other government functionaries to minimise chances of misappropriation of funds.

The locals suggested that peace committees comprising elders and notables should be set up in each village to run the projects under the army supervision.

They urged the government that the projects in Swat should not be run on the pattern of the Malakand Rural Development Project. The Rs3.8 billion MRDP approved in 2001 was sponsored by the Asian Development Bank. However, it has reportedly failed to achieve the desired aims and objectives.

The sources said that the last MMA government had recruited its own people to carry out the MRDP and its funds were also used in the election campaign of one of the MMA candidates in the Malakand by-election.

The locals expressed the hope that the new package, if implemented with its true spirit, would give a new look to the tourist resort. The hotel and tourism sectors will get a boost and business activities will get a new lease of life in the area.

The sources said that about 5,000 people attached to the silk industry in Swat had been rendered jobless in 1993 when the then PPP government withdrew tax-free zone incentives.

The unemployed youths were reportedly hired by the militant groups and used in attacks on military installations, government offices and CD and barber shops.