LAHORE, June 15: Punjab Chief Minister Pervaiz Elahi announced on Tuesday one per cent reduction in the interest rates on tractor and production loans given by the Bank of Punjab.

At the pre-budget press briefing, he said the mark-up rate on loans for the purchase of tractors had been slashed to 10 per cent and for production loans to eight per cent. The reduction in the interest rates, he said, was "part of his government's strategy to encourage investment in industry as well as agriculture in the province."

During his briefing, he outlined his 'vision' for the Punjab for 15 years from now and explained his government's long and medium-term economic strategies and policies to achieve the vision that was being promoted as "Vision 2020."

He said he wished to see the Punjab as a fully literate, moderate, modern, culturally sophisticated, prosperous, and internationally linked society. "At present, it may appear impossible. However, we will make it possible.

We've examples of Malaysia and Singapore before us," he said. To achieve this goal, he added, the government had already begun work on improving education, health care, markets, industry, agriculture, infrastructure and effective governance.

He said the government would encourage and boost the urban and rural economies, adding that the SME clusters in Gujrat, Sialkot, Gujranwala, and Wazirabad would be facilitated and provided with skilled labour. "Moreover, the size of development spending would be raised each year as much as possible."

He said: "We'll involve the private sector in our development strategy as a partner, as it is a proven fact that government cannot create jobs and undertake development on its own. The system of BOT would be encouraged."

He also insisted that his government was trying to follow the knowledge-based strategy of economic growth in the province. The government had taken initiatives to improve literacy and provide a modern education system under its education reforms' project and it had already started giving results.

Pervaiz Elahi also mentioned a number of policies and measures that had already been introduced by his government to boost industry, agriculture, housing and construction, tourism, etc. He said the government was committed to getting good governance and strengthening the district governments.

He also said the local government law and the Police Order 2002 were being improved for better results. The police department had been strengthened with the recruitment of 5,000 people.

"Another 5,000 would be recruited in the next fiscal year and their equipment will also improved," he said. He also expressed his satisfaction over the overall law and order situation, claiming that sectarian violence had been curbed and scores of criminals arrested.