PESHAWAR, Sept 20: The federal government has given approval for the establishment of Fata Development Authority to boost economic activities in tribal areas, an official said.

He said that President Gen Pervez Musharraf had notified the establishment of the authority a few days ago after receiving recommendations from the Prime Minister’s Secretariat.

Arbab Mohammad Shahzad, additional chief secretary of the Fata civil secretariat, has been appointed acting chief executive of the newly-established authority.

The authority had four main objectives including upgradation of the infrastructure, human resource development, exploitation of mineral sector and establishment of reconstruction opportunity zone (ROZ), the official said

He said that the US government had proposed to build ROZs in tribal area, bordering Afghanistan to construct industrial units and generate employment opportunities in the area. Industrial estates would be established in various agencies of the area, according to the plan, the official said.

The federal government was working out comprehensive sustainable development programme for Fata, the source said. The estimated cost of the 10-year plan was Rs109 billion.

The federal government had earlier established Fata Development Corporation in 1971 to upgrade industry, mineral and irrigation sectors in the remote region, which was abolished in 2002.

He said that the donor agencies had proposed the government to establish an autonomous body for the tribal area to avoid red-tapism.