PESHAWAR, May 19: Local businessmen at a pre-budget seminar here on Saturday urged the NWFP government to earmark significant funds in the next budget for maintaining the law and order in the province.

The seminar held at the Sarhad Chamber of Commerce and Industry (SCCI) was attended by provincial Finance Minister Shah Raz Khan, finance secretary Ziaur Rehman, EIROP national project director Mohammad Asghar and other government officials.

Recommendations of the business community ranged from allocating more resources for the social sector to reforming the tax management and administration in the next provincial budget.

SCCI acting president Haji Mohammad Israr and executive members Shaukat Ali Khan, Sufi Bashir Ahmad, Sharafat Ali Mubarik and Zia-ul-Haq Sarhadi expressed concern over the worsening law and order situation in the province.

Peaceful environment was a prerequisite for investment, they said, adding that over the last couple of months, the law and order situation in the province had shattered investors’ confidence. They urged the NWFP government to allocate more funds in the budget for creating an environment conducive to investment.

Among other issues which came under discussion at the seminar was professional tax.

The business leaders complained that at present both the provincial government and the cantonment board were collecting the professional tax from traders and shopkeepers which was unjust.

They identified exploitation of hydel, mineral and tourism potential as key areas for economic development and suggested that the next provincial budget should focus on these areas.

The NWFP finance minister said the MMA government had been endeavouring for the social development of the poor. He said the total development budget of the province in 2001 was Rs6 billion which had now increased to Rs26 billion.

Similarly, he said that over the last four years, the MMA government had established 127 colleges and 17 hospitals, besides undertaking various initiatives for the welfare of the people.

He assured the participants that a substantial increase would be made in the budgetary allocation for the law and order.

Shah Raz Khan claimed that international lending and watchdog agencies had praised the MMA government for better financial management, although it faced discriminatory policies of the federal government.

Accusing the federal government of creating hurdle for the provincial government in improving the law and order situation, the minister said Punjab and Sindh had one policeman for 300 persons whereas in the NWFP this ratio was 1:900.

Mr Khan said that despite its earlier commitments, the federal government was not allowing the province to recruit 15,000 policemen and purchase equipment.