ISLAMABAD (April 09 2009): The Cabinet on Wednesday decided to go ahead with Iran-Pakistan gas pipeline, bilaterally, and accorded approval for signing of agreement for purchasing 500 to 750 million cubic feet gas from Iran for meeting domestic requirements. The Minister for Information, Qamar Zaman Kaira, giving details of the hours-long meeting, said that the Cabinet meeting, with a heavy agenda of over 32 items, was presided over by Prime Minister Yousaf Raza Gilani, and took important decisions.
He said that the Cabinet decided to go for constructing the pipeline for one billion cubic feet, instead of 2 billion cubic feet, since India, the third partner in the proposed gas pipeline, had withdrawn. The price of the Iran gas would be comparatively higher, but it would mainly be used for power generation by plants that are currently run on furnace oil, he added.
Kaira said that another important decision the Cabinet took was about Karachi Electric Supply Corporation (KESC) for resolving electricity crisis in Karachi and rid the city off load shedding. The Cabinet decided to own debt liability of Rs 31 billion of KESC from total Rs 40 billion, which was owed by KESC at the time of privatisation, he said.
He said that the new management of KESC has pledged an investment of $360 million in power generation and improvement of system in Karachi. A committee comprising Advisor on Finance, Minister for Water and Power, Advisor on Petroleum, and Minister for Overseas Pakistanis, has been constituted to look after KESCs performance, he added.
The meeting also decided to give special incentives to the Export Processing Zone (EPZ) at Gwadar to boost economic activities in Balochistan. A ministerial committee, under Minister for Industries, Advisor on Finance, and Minister for Port and Shipping, was constituted to recommend incentives. The Minister said the government was striving to bring the backward areas of Balochistan at par with other developed parts of the country.
The meeting also accorded approval to a proposal of the Minister of Water and Power to move forward the clocks by an hour from April 15 in a bid to make maximum use of daylight to save energy.
Kaira said the Cabinet decided to impose 25 percent regulatory duty on export of molasses to help meet the needs of the local industry. So far, he said, the export of molasses was over 400,000 tons and its further export would hurt the local industry as sugarcane crop was quite low this year. The meeting also discussed the new educational policy but delayed till next meeting with a decision for taking on board the provincial governments to ensure its implementation. However, it approved to set up a National University of Law and Social Sciences in Islamabad with its campuses in all the four provinces to cater to the higher education for law students.
The Minister said health and education issues were on top priority of the government agenda and the government would seek funding from Friends of Pakistan for the purpose, and would gradually raise the allocations for education and health to 10 percent of GDP.
The meeting also decided to streamline the education system in religious schools, without bringing them under any regulatory control. The education minister said: "We dont want to impose curbs on religious education, but want the Madaris to teach modern education so that the students of these institutions may also become part of other services."
The Cabinet also directed the Ministry of Finance for monthly briefing about economic indicators in the country. The meeting also decided to review Afghan transit trade with the view to meeting the requirements of Afghanistan and, at the same time, warding off any loss to Pakistan. The Minister said it was also decided that legislation would be made through bills and parliament, instead of ordinances.
Meanwhile, a statement said that the Cabinet approved ratification of agreement on co-operation in the field of transportation and transit of goods between the Government of Pakistan and Government of Uzbekistan. The agreement envisages free traffic in transit to the carriers of contracting parties through multi-modal transport system (land, rail, sea) in accordance with the existing national laws and regulations. The main objective is to provide Uzbekistan access for transshipment of its trade cargo to/from Gwadar port.
In pursuance of the International Road Transport Agreement signed between the Governments of Iran and Pakistan in June 2008, Cabinet gave approval for Instrument of Ratification concerning the agreement. This would facilitate international transport of passengers and goods by road between the two countries and in transit through their respective territories. By signing this Agreement, traffic/trucks from Pakistan and Turkey would be able to ply through Iran, while Iran will also have access to China via Pakistan. Besides boosting economic opportunities, the access to other Central Asian Republics and Europe through Iran and Turkey would be an added advantage to Pakistan.
The meeting gave go-ahead to start negotiations on draft agreement on defence co-operation with Hungary. Approval in principle was granted for negotiating an MoU between National Defence University and Institute des Hautes Etudes de Defence National of France. This will be helpful in enhancing the relationship and pave the way for research and co-operative activities. Approval was also granted for initiation of negotiations for signing MoU with Jordan on collaboration in defence equipment/research and development/joint production/sales.
To further cement socio-economic and political relations with Libya, the Cabinet gave ex post facto approval for initiation of negotiations for an MoU on bilateral political consultations. It will provide a forum to take stock of the trajectory of bilateral relations and share views on issues of mutual interest. Ex post facto approval was also granted for entering into negotiations for extradition treaty with Libya. Approval was also granted for an MoU for co-operation in the field of employment. Pakistan was one of the main suppliers of skilled and semi-skilled manpower to Libya during 1970s and 80s. However, due to stagnation in relations and absence of formal arrangements, Pakistans manpower in Libya declined from over 100,000 to 10,000. The proposed MoU would help enhance co-operation in the field of employment/manpower export to Libya.
In order to strengthen co-operation in the areas of labour and occupational training with Bahrain, The Cabinet gave approval to start negotiations for entering into an MoU. Pakistan is a signatory to the Agreement on establishment of South Asian Regional Standards Organisation (Sarso) that is mandated to remove technical barriers on trade to facilitate flow of goods and services in the Saarc region. The Cabinet ratified the Sarso agreement.
Ex post facto approval was also granted for initiation of negotiations and signing of MoU with the Government of Korea for establishing "Garment Technology Training Centre" in Karachi. The project aims to enhance competitiveness of textile and apparel industry by providing skilled work force.
In order to conserve energy and take advantage of the availability of sunlight during summer, the Cabinet approved to introduce daylight saving through advancement of clocks by one hour (GMT +6) from 15 April 2009. This will help to conserve 250-300 MW on average of daily electricity. The Cabinet also approved signing of agreements for abolition of visa for diplomatic and official/special passport holders with Libya, Indonesia, and Ireland. The Cabinet approved ratification of bilateral investment treaty with Kazakistan on reciprocal promotion and protection of investments.
The Cabinet approved Pakistans accession to the International Convention for the Suppression of the Financing of Terrorism. The convention requires parties to take steps to prevent and counteract the financing of terrorism whether direct or indirect through groups claiming to have charitable, social, or cultural goals or which engage in illicit activities.
The Cabinet granted approval to the draft of Pakistan Marine Insurance Bill 2009, draft of Law for Implementation of Convention of International Trade in Endangered Species of Wild Fauna and Flora Convention.
The Cabinet also gave approval, in principle, to start negotiations on MoU between Pakistan and Iran on Library Co-operation. The proposed MoU will provide exchange of books, periodicals and other library materials besides introduction and arrangement of training courses, digitalisation of library materials and exchange of technical information and services. Approval to the Bill to establish NFC Institute of Engineering and Technology at Multan was also granted.
The Cabinet also approved, in principle, the draft bill to provide for establishment of National University of Law and Social Sciences at Islamabad. The Cabinet also approved draft Anti-Money Laundering (Amendment) Bill, 2009. The proposed amendments are necessary to bring the various provisions of Anti-Money Laundering Ordinance 2007, in line with international standards. The cabinet approved to levy 25 percent regulatory duty on export of molasses, the statement said.
