PESHAWAR: Prime Minister Yousuf Raza Gilani on Saturday announced that the centre would pay Rs110 billion to the Frontier government on behalf of the Water and Power Development Authority (Wapda) on account of net hydel profit arrears, settling a decades-long dispute.

The federal government would immediately release Rs10 billion, while the remaining amount would be paid in four instalments in the first quarter of every fiscal year, Mr Gilani told a press conference at the Governor’s House here after holding meetings with the provincial governor, the chief minister and other senior officials on various issues.

The prime minister also announced withdrawing a case on behalf of Wapda, saying that a technical committee would work out recommendations for payment of future liabilities, including interest, to the province under the same head.

In 2005, an arbitration tribunal had decided in favour of the NWFP, ordering Wapda to pay Rs110 billion in five instalments.

The federal government was the guarantor for Wapda, which instead of complying with the award challenged it in a civil court of Islamabad.

Subsequently, the Frontier government approached the Supreme Court, where the case was pending.

'The technical committee will determine the size of future ongoing payments to the province,' Mr Gilani said.

Relif for displaced people

The prime minister chaired two different meetings to review the law and order situation, reconstruction and relief operations in Malakand and South Waziristan.

Mr Gilani explained that the federal government was pursuing a three-R strategy (relief, rehabilitation and reconstruction) to deal with the situation in Malakand. The government, he said, was in the reconstruction phase over there.
'Military action is not the solution of any conflict,' Mr Gilani said.

Economic revival and provision of health and education services were priorities of the government, Mr Gilani said, adding that Rs50 billion had been allocated in the budget for Malakand reconstruction because the government 'cannot wait for foreign aid to start reaching here'.
 
The federal government had received only a fraction of the pledged foreign aid, the prime minister said.

Referring to the fresh displacement of people from South Waziristan, he said the government would leave no stone unturned in carrying out a Swat-like relief operations there.

He said Mehsuds were patriotic tribesmen and they were still rendering sacrifices for Pakistan and the government would not leave them alone in this hour of need.

He announced that displaced families from South Waziristan would get a cash grant of Rs25,000 on their return to their homes, adding that this was in addition to Rs5,000 per family being given to them. The federal government had initially earmarked Rs2.5 billion for relief activities, he said.

The prime minister also announced the formation of a committee under his chairmanship, comprising the governor, the chief minister and the head of the ‘Special Support Group’ for devising an exit strategy for South Waziristan. The committee would present its recommendations in 30 days, he added.