MIRPURKHAS, Sept 17: Prime Minister Shaukat Aziz has said that half of the expenses of the Sindh government on relief and rehabilitation of rain-affected people in the province will be met by the federal government.

Addressing a public gathering at the Sindhri airport on Sunday, he said his visit was aimed at assessing losses caused by torrential rains.

Mr Aziz said he would discuss a proposal to waive small agricultural loans in consultation with Zarai Tarraqiati Bank Limited and make an announcement on Monday. The areas declared as calamity-hit would be exempted from the land revenue and Abiana (water tax), he added.

He announced that the Left Bank Outfall Drain project would be redesigned to increase its water intake and said that the Makhi Frash Link Canal project had been approved and work on it would begin soon.

The prime minister also announced a plan for supply of natural gas from Hyderabad to Mirpurkhas up to Mithi in Tharparkar district.

He said that progress and prosperity of the country depended on sustained economic policies.

The prime minister said that the PML and its allies were jointly working for the progress and prosperity of the country and record development works were going on in Sindh.

He praised the people of Sindh for braving the rain calamity and lauded relief efforts undertaken by army personnel and staff of the Sindh government, district governments and taluka municipal administrations.

Mr Aziz said that 35,000 ration bags had been distributed among the rain-affected people in Sindh and more would be provided in a few days.

Sindh Chief Minister Dr Arbab Ghulam Rahim said he had received complaints against some nazims about distribution of ration and warned that he would take action against any misuse of relief funds.

He said that after completion of a survey, the affected people would be compensated.

Earlier, the prime minister was briefed on the losses and ongoing relief and rehabilitation work in the affected areas of the province.

Our Mithi correspondent adds: Addressing a gathering at the circuit house, the prime minister said that Thar had great potential for exploration and exploitation of mineral deposits because of its huge deposits of coal, granite and china clay.

He said that the prime minister of China had recently assured him that work on the coal project in Thar would begin soon.

The work on project was indeed slow, he said, but it would be completed as the country needed more electricity due to fast economic development.

The prime minister said that granite mines in Nagarparkar would be developed.

Mr Aziz announced remission of agricultural loans of up to Rs50,000 in the rain-affected Kaloi and Bhitaro dehs of Diplo taluka.

He also announced the establishment of a cattle breeding centre.