Terrorists trained at the camps had taken part in anti-state activities like bomb blasts and blowing up of electricity pylons, gas pipelines and railway tracks, he said on Friday addressing eminent people at port town Gwadar in Balochistan where the nationalists are involved in a violent struggle against government forces.

Violence in the restive tribal province has increased after the killing of Baloch nationalist leader Nawab Akbar Bugti. Baloch nationalists accuse the governmnet of neglecting the province's development and have demanded more autonomy.

Announcing a slew of development projects, Musharraf said that the Gwadar port being built with Chinese assistance would soon be operational and the government was in the process of selecting a suitable port operator.

An oil refinery would be established in Gwadar where container terminals would also be set up, he was quoted as saying to the media in Islamabad.

He promised that seats would be reserved for students from Balochistan in all educational institutions across the country.

He urged people to elect those who espoused liberal and progressive ideologies and reject fundamentalist and backward-looking political parties.

President Musharraf said the government had set into motion a development programme in Balochistan. He said road and rail links would be established between Gwadar and other parts of the country and an international airport would also be built in the town for which land had already been acquired.