LAHORE (APP) - The Punjab government plans to develop a new industrial city at a cost of Rs2.5 billion near Motorway during the current fiscal year (2011-12). A site in this regard is being identified, official sources told APP on Saturday. They said the government was attaching high priority to strengthening of the industrial base and since installation of new industrial units was difficult for the government alone, it was offering lucrative incentives to the private sector. Special steps are also being taken to establish a business friendly environment in the province. "After recent suicide attacks, confidence of local investors has been shaken and they are reluctant to invest here," the sources said. However, they said, to restore their confidence, special focus is being paid on improving law and order in the province. The sources maintained that the country's prosperity was directly linked to huge industries. "No considerable number of industries were set up during the past few years but with the government's comprehensive industries plan, the maximum number of industries are being established both in public and private sector," sources added. They said new industries would create job opportunities thus accommodating hundreds of thousands of unemployed people. After gas shortage and intense power loadshedding, a number of industrial units have already been closed or face closure.