QUETTA, Oct 2: Prime Minister Shaukat Aziz on Saturday announced a Rs3 billion grant for speeding up development activities and rehabilitation of drought-hit areas in Balochistan.

Addressing a meeting of the Balochistan cabinet after his arrival here on a two-day visit, the prime minister said that negotiations would soon be resumed to reach a consensus on the next National Finance Commission award.

He said the federal government would provide 200 bulldozers to the province for the development of the agriculture sector.

The prime minister asked the provincial government to abandon the policy of ad hocism and prepare a five-year development plan. He said the federal government would cooperate in funding and management of such a plan.

He said the provincial government should encourage the private sector and pay attention to the development of the agriculture sector in order to create jobs and income opportunities.

"If Balochistan moves forward on a self-help basis, it will get help from all sides," Mr Aziz said.

He announced that the government would launch housing schemes.

"I think there is a lot of investment potential in Balochistan and it only needs effective planning," the prime minister observed.

He said the livestock and dairy sector was not paid proper attention in the past and asked the provincial government to help peasants get loan from the Khushhali Bank for the purchase of livestock. He said a small step in that direction would increase economic activities and create income and job opportunities in rural areas.

He said the province should set up a market for exporting different items to Afghanistan and concentrate on trade with the Central Asian states through the neighbouring country.

He informed the cabinet that the federal government was laying a railway line from Chaman to Spin Boldak.

"The Balochistan government should send a trade mission to Kandahar for increasing the trade volume," the prime minister said.

He said the Gwadar project would be operational next year and added that the construction work would be completed in a record time. The Gwadar port would play an important role in the development of Balochistan, he said.

He said the coastal highway project would be completed soon and added that more roads linking the far-flung areas of the province with its main cities were being constructed.

He said the country was nearly bankrupt five years ago but people were not aware of it.

He said the stability and solidarity of the country could not be protected if its economy was weak. He said the country would achieve more progress if the current policies continued but added that the government would have to improve its performance.

"We must improve the law and order situation in the country as development is not possible without it," the prime minister said, adding that some elements were working against the interest of the country.

"A strong Pakistan will ensure peace in the entire region," he said.

He said the judicial system should be made more effective in consultation with lawyers and judges so that people could get speedy and inexpensive justice.

The prime minister informed the cabinet that work had been started for supplying natural gas to Khuzdar.