PESHAWAR, Aug 21: The NWFP government’s ‘private investment: growth and development’ strategy underlines the need for measures to expand the industrial base and increase agriculture sector’s output by developing human resources and attracting private sector’s investment.

The strategy, formulated recently in accordance with a loan agreement with the World Bank, recommends measures to develop human resources through education and training to enable people earn higher incomes and to attract private investment in the province to generate employment and enhance income level. The NWFP has the lowest income level among the provinces.

“Investment can be encouraged by mitigating provincial policy weaknesses and offsetting its natural disadvantages and by offering opportunities to exploit the NWFP’s vast natural resources for which improvement of business environment for private sector, development of the human resource base and development of sectors that are based on provincial resources is essential,” says the strategy prepared by NWFP’s member on the National Finance Commission award Dr Mohammed Zubair with financial assistance form the World Bank.

Referring to reduction in the NWFP’s loan liabilities after premature retirement of about Rs10 billion during the past few years, the strategy points out that the fiscal space created and expected revenue increase, if supplemented with private sector investment, could be best utilised to finance development.

The strategy highlights the need for the provincial government to attach highest priority to the establishment of an atmosphere that generates confidence among private investors.

“The rule of law, independence of judiciary, protection investments, property rights, enforcement of contracts and protection from ordinary crimes are just some of the aspects of law enforcement which are important to investors,” it says.

The strategy refers to various sectors where improvement can be brought through policy changes to attract private sector investment by creating a congenial atmosphere for the purpose.

In addition to proposing measures to relax regulations for registering businesses, the strategy asks for improving the road network in the province, particularly the provincial highways, and the power distribution.

It envisages that the province should develop a process to monitor the services delivered by the federal government. It says the province should closely coordinate with the centre to ensure a prompt services delivery system to improve business environment.

The strategy also envisages schemes for exploiting natural resource base of the province in the hydroelectric power, marble, precious and semi-precious stones, tourism and agriculture sectors.