Prime Minister Syed Yusuf Raza Gilani on Sunday rejected PML-N President Mian Nawaz Sharif's proposal of new administrative units, urging that people of Saraiki belt wanted a separate province.

The Prime Minister was addressing a big gathering of people belonging to flood-hit communities after distributing keys of homes among affected women at newly-built BenazirBhuttoShaheedModelVillage in Sinawan here.

Gilani said Mian Nawaz Sharif had recently given a statement in which he proposed new administrative units in the country. "But we reject this offer," he added.

He said Saraiki people are sober, kind-hearted and have a sweet language but it does not mean they do not know what they want.

"They do not compromise on principles. They hold their ground like I do whenever any problem arises," he added.

He said separate province was the demand of the people of the South Punjab, a backward area, which lacks progress and there is a sense of deprivation.