ISLAMABAD, Feb 24: President Pervez Musharraf said on Thursday he had asked the federal government to do away with the concurrent list to give maximum autonomy to provinces and finalize a new NFC award on the basis of 50:50 shares for the centre and the federating units.

"Why should the provinces beg for increased funds and why can't we offer them maximum autonomy by removing the concurrent list from the constitution and giving them 50 per cent share in the new National Finance Commission award," he asked.

Speaking at a news conference after inaugurating a website prepared by the ISPR containing his speeches on vital issues here at the President's House, Gen Musharraf spoke at length about political and economic problems facing the country, relations with India and Iran, government's resolve against terrorism, sectarianism and extremism and the political set-up of the country after 2007.

The president said horizontal distribution of resources among provinces under the NFC award posed a problem. He was of the view that vertical distribution of resources should be on a 50:50 per cent basis between provinces and the centre.

During his first three years in the government, he said, he had agreed to a 48 per cent share for provinces and 52 per cent for the centre in the resource distribution formula.

The president, however, ruled out the possibility of finalizing a new NFC award on the basis of revenue generation as was being demanded by Sindh or on the basis of poverty and area as was demanded by the NWFP and Balochistan.

"Making revenue generation a basis is neither doable nor practicable. But let me assure you that the new award would be finalized by extensively accommodating the views of the provinces," he told a reporter.

He said it was very satisfying that Punjab was no longer demanding finalization of a new resource-distribution formula on the basis of population alone. The president claimed that the government had achieved a resounding success in the macro-economic field.

He said the government had broken the Al Qaeda network by arresting over 700 of its operatives and was paving way for enlightened moderation by taking on extremist forces across Pakistan.

"We have destroyed Al Qaeda's logistics. The army, police and other law-enforcement agencies have eliminated the central communication network of Al Qaeda and its members are now on the run," he said.

The planners and the mastermind behind terrorists, he said, had been cut to size. But the war against terror would continue till the complete elimination of terrorist organizations, including Al Qaeda, he added.

Asked about the whereabouts of Osama bin Laden, the president said the Al Qaeda leader would be located and eliminated soon. About the situation in Balochistan, he said the Baloch were the most patriotic people of Pakistan and the government had no plans to launch any military operation against them.

He said no military action was being conducted in Balochistan nor was the government thinking on such lines as there was no need for it. He was of the view that out of about 75 tribal chiefs (Sardars), only three or four were involved in anti-government and anti-state activities.

"There is an armed insurgency in Balochistan and we saw the country was held hostage for some time when mortars and other weapons were fired at the PPL installations and such armed attacks by subversive elements on vital national installations will not be allowed."

He warned those who had private militias in Balochistan of serious consequences and said the government would "establish its writ there at every cost". "Sardars are not involved in an armed insurgency, in fact there are warlords who are maintaining training camps and private armies in Balochistan," he said, adding that sub-tribes, including Kalpars, were facing hardships and brutality at the hands of some main tribes.

"May be there is some deep-rooted conspiracy against the Gwadar port which will soon be inaugurated by the Chinese prime minister," the president said, and added that he could not say anything about involvement of any foreign hand in Balochistan.

He said the government needed to collect evidence about involvement of any foreign country or agency in that province. However, the president said he did not understand why some people in Balochistan had turned against him despite the fact that he was the first Pakistani leader who allocated large funds for the province.

He said it was true that there was a sense of deprivation in Balochistan which needed to be removed and that efforts should be made to create political harmony among all the parties and groups of the province.

"I have reduced Punjab's PSDP allocation from 22 per cent to 9.8 per cent and increased Balochistan's share from two per cent to 14 per cent to address the problem," he added.

Gas royalty for Balochistan was Rs500 million in 1999 which had been increased to Rs1.5 billion, President Musharraf said and added that this year it would be increased further.

He said Rs13 billion was given to Balochistan on account of gas royalty alone, while Rs31 billion was given additionally to the province, which included gas development surcharge.

A decision, the president added, had been taken to provide gas to Ziarat, Loralai, Qalat and other areas in Balochistan by June this year. Similarly, the job quota for Balochistan had been increased and the royalty for gas and the gas development surcharge had been considerably increased.

When asked if Pakistan could address the concerns expressed by India - security and uninterrupted supply of gas - to join the Pakistan-Iran gas pipeline project, President Musharraf said: "Pakistan will ensure the security of the pipeline at all cost through its military, police and other law-enforcement agencies."