HYDERABAD, March 16: Prime Minister Mir Zafarullah Khan Jamali has categorically denied that he had announced a Rs10.5 billion development package for Hyderabad during his visit to the city in September last year.

Talking to journalists at the ground-breaking ceremony of a liquid petroleum gas plant of the Joint Venture Ltd in Jamshoro on Monday, he said that if the president had made such an announcement, he was not aware of it.

Mr Jamali also refuted the reports that divisions were being converted into provinces. He said the president had abolished divisions. However, he said he did not see any harm if more provinces were created but hastened to add that the approval of the four provinces and the federation was essential for the purpose.

He said relations between Pakistan and India were improving but cautioned that Kashmir was the core issue which needed to be resolved. Answering a question about the visit of US Secretary of State Colin Powell, Mr Jamali said he was not aware of the agenda.

About the National Security Council, he said the bill would be tabled in the National Assembly. He did not agree with a questioner that there was a price hike or flour crisis in the country.

Answering a question about Sindh's share in the National Finance Commission award, the prime minister said the province would get its due share. About the project he inaugurated, the prime minister said technical jobs would be given to the people on the basis of merit. However, he said local people would be given preference if they fulfilled the requirements. He said only local people would be provided with non-technical jobs.

DIST GOVT: Meanwhile, the district Nazim and district council members threatened to resign if development funds were not immediately released and interference in district government affairs continued.

The government promised to release funds of the Hyderabad Development Package, Rs500 million of the governor's grant, Rs141 million of Annual Development Programme 2002-3, and amounts of Khushhal Pakistan Programme and sugar cess by February but the funds have yet not been released.

Reacting to the inordinate delay in the fund release, a good number of Taluka and union council Nazims of the district are reported to have either submitted their resignations to District Nazim Dr Makhdoom Rafiquzzaman or given him signed blank papers.

It was learnt that the district Nazim had talked to some Sindh government officers on Monday but he did not get any positive response, except promises. On Tuesday, Mr Rafiquzzaman met Mr Jamali in Jamshoro who told him he would visit Hyderabad on March 28 and talk to him on the issue.

Addressing the Taluka and UC Nazims at a district council session here on Tuesday, he said that Rs10.5 billion Hyderabad Development Package had become controversial as, according to journalists, the prime minister had denied having announced the package in September.

He said he was shocked to hear this statement from Mr Jamali and added that they should wait for a clarification. He said the members were ready to submit resignations to the president.

The Nazim said he believed that President Musharraf was being misguided. He regretted that the lapsed funds of the 2002-3 ADP amounting to Rs141 million had not been resorted. He said that Sindh Chief Secretary Dr Mutawakal Kazi had asked him not to immediately react on the issue as he (secretary) would be discussing the mater with officials concerned.

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