Under the package the Northern Areas Legislative Assembly (NALA) will now have the powers to prepare, debate and pass its annual budget and development plan.

“Most of the powers presently being exercised by the Ministry of Kashmir and Northern Areas would be transferred to the new chief executive and the legislative assembly under the package, the President said, amidst a thunderous applause by the people here at the FCNA Auditorium.

Also the post of the current Deputy Chief Executive of Northern Areas has now been upgraded to Chief Executive, empowered to exercise full administrative and financial authority.

The Minister for Kashmir and Northern Areas, who currently holds the charge of Chief Executive will become Chairman of Northern Areas, said the President, who flew into the scenic valley earlier in the day.

Addressing the notables of the area, he said that most of the 52 proposals prepared by the Northern Areas Legislative Council have been approved by the government, adding, the new measures would promote greater democracy in the area.

He said this will usher in a new era of maximum autonomy for the people of the NAs, fulfilling their long-standing demand.

The Chief Executive, Speaker and Deputy Speaker of NALA can now also resign or face a no-confidence motion, which is a step forward towards greater democracy, the President said.

President Musharraf underlining the need for fast-track socio-economic uplift of the Northern Areas said, the budgetary allocations for NAs which stood at Rs. 800 million in 1999 have now crossed Rs. 7.5 billion.

He said in future the finance ministry would make a single entry budgetary allocations for the Northern Areas, which would be utilized by the NA authorities themselves.

The President said all powers would be devolved down to the grassroot level, making the people determine their own destiny.

He said necessary checks and balances would be introduced to ensure judicious and transparent use of financial allocations for benefit of the common man.

The President strongly urged the elected representatives for exercising honesty and showing commitment in the utilization of budgetary allocations only for the socio-economic uplift of the people, specially at the grassroot levels.

President Musharraf said the Legislative Assembly would be empowered to move No-Confidence Motion against the Chief Executive, Speaker and the Deputy Speaker of the Assembly. These top public office holders will also have the option to tender resignations, he added.

The President also announced setting up of Northern Areas Development Working Party (NADWP) to be headed by Additional chief secretary, for approval and execution of the development projects in various sectors.

The Chief Secretary Northern Areas will act as the Principal Accounts Officer, he said, adding, an audit and Account Institution for Northern Ares would also be put in place to ensure necessary checks and balances.

The President also announced one thousand (1000) new posts in various civil departments for the current fiscal year to help meet the requirements, to be generated under the new package. He also directed the Ministry of Finance to clear the backlog of vacant posts.

Under the new autonomy package, a boundary commission will be constituted to sort our demarcation of boundaries between the NWFP and the Northern Areas in an amicable manner.

President Musharraf announced that he loans upto Rs. 50,000 of Zarai Tarakiati Bank Limited (ZTBL) are being written off while the interest on the Small and Medium Enterprises (SMEs) loans would be waived off. Over 12,500 ZTBL borrowers would benefit from the announcement, he added.

The President said Korakorum Highway upto Khunjarab Pass would be widened and upgraded and the Central Asian Republics (CARs) would be connected through a new road network, opening new economic opportunities for the people of Northern Areas.

He also directed the Civil Aviation Authority (CAA) to improve the runway of Gilgit Airport and announced construction of Mastooj Bridge, to connect Gilgit with Chitral.

The President called upon the elected representatives of the Northern Areas to work with total commitment, devotion and honesty for their progress and prosperity.

The President said that the NAB cases of the local government officials will now be tried by the courts in Northern Areas.

He said the National Vocational and Technical Education Commission (NAVTEC) will open vocational and technical education centers in Northern areas, for skill enhancement of local youth and to enable them get jobs in various fields.

He also announced to upgrade Rehamanpur and Dagoni areas to sub-divisions, so as to meet the requirements of population.

The President also spoke about the economic turn-around achieved by the country over the last eight years and said the revenue collection which used to be Rs. 204 billion in 1988 and Rs. 306 billion in 1999 has now reached to over Rs. one trillion in the current fiscal year.

He said it was due to this economic turn-around that the development budget under the Public Sector Development Program (PSDP) which was Rs. 80 billion per year on average during the 1988 to 1999, has now touched a record Rs. 520 billion.

The President said the people of Northern Areas, who were neglected in the past, are now being empowered with increase socio-economic development as well as through financial and administrative authority.

He also mentioned the commissioning of new 18 MW Naltar Hydro Power Project and said it will overcome the shortage of electricity in the Northern areas.

The President said that the government will encourage the setting up offruit processing industry in the northern Areas to exploit the economic potential of this area.

He recalled the incidents of sectarian violence in the area and said he was happy to know that now there was peace and harmony in the area.

The President said Islam teaches peace, brotherhood and harmony and the people of this area should follow these ideals for the benefit of this area and country.

He also called upon the women to ask their sons, brothers and husbands not to indulge in anti-peace acts and shun the sectarian differences, as such things could derail the process of development and the tourists would not come to their area.

Minister for Kashmir Affairs Major (Retd) Tahir Iqbal highlighted the measures taken by the present government for the uplift of the Northern Areas and said record allocations have been made in all fields to facilitate the people.