MUZAFFARABAD: The Azad Jammu and Kashmir (AJK) government has called upon the federal government to provide AJK with Rs20 billion, in order to “expedite developmental activities in the region”.

It has also requested a one-year extension of the Earthquake Reconstruction and Rehabilitation Authority (Erra) to complete ongoing reconstruction in earthquake affected regions.

The demands were made by AJK Prime Minister (PM) Chaudhry Abdul Majeed, through Federal Minister for Information and Broadcasting Pervaiz Rashid, who called on him at the Kashmir House this Friday, on PM Nawaz Sharif’s request.

PM Majeed said AJK’s development budget has not increased since 2009-10 despite the escalation of prices, crippling development work in AJK.

“Under the current annual development grant (Rs10.5 billion), the pace of infrastructure development remains slow, thereby dealing a blow to the government’s aim to tap into the region’s rich potential in tourism and hydropower generation,” PM Majeed told Rashid.

“AJK is trying to reduce fiscal dependence on Pakistan, but since our infrastructure has suffered greatly after the earthquake, we are unable to make up the losses on our own,” he added.

He also told him that hundreds of urban development projects in affected areas are currently under construction or in the pipeline, and the disbanding of Erra could delay completion or initiation.

The ongoing projects in the affected areas require Rs3 billion as counterpart funding by Pakistan, or they will be left incomplete, he said.

The federal minister was also asked that the ratio of water use charges, or ‘net hydel profit’ being given to AJK should be brought at par with what is given to Khyber Pakhtunkhwa (KPK).

According to an official handout, the issues brought up during the meeting included a Rs8 billion increase in AJK’s development budget, additional allocation for Erra and AJK’s medical colleges, an uninterrupted wheat supply and subsidy, fair distribution of electricity and scheduled load-shedding, the provision of 250 megawatts of power in line with the principle agreed to by the federal minister for water and power, an increase in funding for projects executed by the Ministry of Kashmir Affairs in 2014-14, a settlement for the release of 614 cusecs of water from the Mangla reservoir, the settlement of a power tariff and outstanding dues with the Water and Power Development Authority (Wapda), the commissioning of Rampura grid station in Muzaffarabad, the inking of the Neelum-Jhelum Hydroelectric Project agreement between the AJK government and Wapda, the inclusion of Poonch Medical College in the federal Public Sector Development Programme, and a 15 per cent matching grant for projects executed under the Muzaffarabad City Development Programme (MCDP).

The handout quoted the federal minister as saying that he would bring these issues to PM Sharif to resolve them.

“AJK is one among the most beautiful regions in the world and its indigenous resources, tourism, forests and rivers, offer a huge potential for the incoming generation and its development and prosperity,” the minister said.

Published in Dawn, July 5th, 2014