Commenting on reports about suspension of work Federal Minister for Water and Power Liaquat Jatoi said that the work on the Gomal Zam Dam would be completed by the Chinese engineers.
Jatoi said Chinese Ambassador in Pakistan had given an assurance to this effect to Foreign minister Khurshid Mahmood Kasuri when he condoled the death of the Chinese engineer.
While replying to a question by the BBC, Liaquat Jatoi assured that the government would provide foolproof security to the Chinese engineers and try to get the project completed.
He deplored the elements who indulged in terrorist activities and said those elements did not want foreign investment and development in Pakistan, adding in fact they wanted Pakistan's relations with other countries to worsen.
Asked how he can expect investment in light of the prevailing condition, Jatoi made a counter question where is it not happening in the changed circumstances? Is it not happening in Saudi Arabia? Is it not happening in Philippines and Indonesia?
When asked if the Chinese feel secured in Pakistan, the Minister said, absolutely they were not worried by such incidents, adding that kind of blasts and incident took place in every country but the people didn't not leave that country. We should denounce those incidents, he said.
Chinese engineers Wang Peng and Wang Ende, both employees of state-owned Chinese firm Sino-Hydro Corp, were heading to work on the Gomal Zam dam project when they were abducted on October 9.
Wang Peng, who worked as a surveyor on the project, died after a rescue operation by army commandos on Thursday. Wang Ende was rescued unharmed, and is back in China.
"The Chinese have stopped working. They are mentally traumatised," said a senior official at the Water and Power Development Authority, which is overseeing the dam project.
"At the moment we are not pushing them to resume work," he said. "As soon as they are over the trauma, they will start working."
Brigadier Mehmood Shah, head of security in the tribal region, confirmed that the Chinese engineers had moved from Tank, near the dam site, to the town of Dera Ismail Khan.
Pakistani media said 107 Chinese nationals were working on the dam along with around 700 Pakistanis. The figures could not be confirmed.
A Chinese embassy official said it was understandable that the Chinese did not want to go to the project site.
"They have just lost a colleague, and the security arrangements are not very good," he said.
Shah said security was being enhanced for Chinese working in the area. "We are hopeful that they will resume work soon."
Pakistan has assured China that it will provide extra security to Chinese nationals working in the country and hunt down a former Guantanamo Bay inmate, Abdullah Meshud, who masterminded the abduction of the two engineers.