ISLAMABAD, March 12: Raising of the Mangla Dam will displace 44,000 persons and damage 8,000 houses, the National Assembly was told here on Friday. During the question-hour session, the water and power minister, in a written reply , said an unprecedented compensation package had been prepared by the governments of Pakistan and AJK for the rehabilitation of affected persons.

For the resettlement of the displaced population, a new city near Mirpur is also being developed for the affected people. In addition, four small towns will also be developed near the reservoir and infrastructure of the new city and the towns will be developed at the project's cost, the minister said.

In reply to a question, Minister for Industries and Production Liaquat Ali Jatoi said the Utility Stores Corporation (USC) had recovered the deficit, as its financial health had been restored.

He said the USC was an important public sector organization, which was set up to check price control of essential goods.

The USC has offered different packages both during Eidul Fitr and Eidul Azha by offering special discount on a number of items, he said adding that the organization also supplied wheat on reduced prices recently. The USC is also maintaining 50 stores in Rawalpindi district.

In reply to another question, the minister said the annual production of local cars in the country during the year 2002-03 was 63,095 against 41,233 cars during the year 2001-02.

In the current financial year, the production of seven months ending January 2004 was 52,752 and is projected at 92,000 cars for the fiscal 2003-04.

The federal cabinet, in its meeting of February 11, 2004, had taken decisions regarding prices of the locally-manufactured cars. Prime Minister Mir Zafarullah Jamali had also constituted a committee, which would submit its recommendation to the cabinet soon, he said.

The House was told that provincial governments had promulgated ordinance for the promotion and regulation of private educational institutions to regulate fee structure.

About the private educational institutions in the Capital Territory (ICT), a bill for the promotion and regulation of private educational institutions is under process, which proposed that fee and other charges should not be fixed or raised beyond reasonable limit while the Federal Directorate of Education (FDE) will regulate the same through a uniform policy.