Govt plans Rs160 bn TFCs to resolve circular debt issue

ISLAMABAD: The federal cabinet Wednesday expressed its serious concern over the latest increase in the prices of petroleum products and directed the finance ministry to formulate a strategy in coordination with the provincial governments to minimise its effects on the common man. It, however, stopped short of taking any step to review these prices.

The cabinet meeting chaired by Prime Minister Yusuf Raza Gilani decided to issue term finance certificates worth Rs160 billion to resolve the circular debt issue.

According to sources the issue of recent hike in the prices of the petroleum products and CNG was raised by minister for port and shipping Babar Ghuari and minister of state human resource development Sheikh Waqas Akram. They asked the cabinet to review the decision but the prime minister only directed the finance ministry to minimise its impact on the people.

Briefing the media after the meeting information minister Dr Firdous Ashiq Awan justified the hike saying this was the result of steep rise in the prices of oil in the international market. She however said that the government in consultation with the stakeholders including the provincial governments would chalk out a strategy to offset its impact on the prices of daily use items.

She said the National Assembly has approved Rs120 billion as petroleum levy for the current fiscal year but in the first six months the government has collected only Rs20 billion instead of Rs60 billion. “The government initially did not transfer the impact of rise in the petroleum prices to the people but had to do so now to avoid further revenue deficit,” she added.

The minister severely criticised the Punjab chief minister Mian Shahbaz Sharif saying he is politicising the fake drugs issue. Shahbaz Sharif should play his constitutional role as he is not only the chief minister of Punjab but also looking after the provincial health ministry.

She said that it was not the responsibility of the federal government to supply drugs to hospitals. She said that a mechanism exists where the provinces have to register medicines and they should identify those who involved in the supply of spurious drugs.

The minister said the that the prime minister has convened a meeting of the Council of Common Interest on February 9, which would discuss, among other things, the issue of drug regulatory authority. She said an impartial inquiry should be conducted into the matter.

She said that the government is striving hard to ensure uninterrupted gas supply to domestic consumers. In this regard all avenues, including import of LNG, are being utilised.

The minister said the cabinet endorsed the decisions of the Economic Coordination Committee. It has directed the Zarai Taraqiati Bank to provide loans to farmers on easy instalments for tractors. She said that the Bank has also been directed to ensure execution of other pro-farmers programmes.

The cabinet noted the difficulties faced by the growers of sugarcane and the prime minister has directed the concerned authorities to implement, in letter and spirit, the Sugarcane Act to ensure payments to the growers.

The ministry of finance apprised the cabinet about the prices of essential commodities. It said recently the prices of 18 items have witnessed upward trend while those of 12 have come down. The ministry said food inflation level has come down.

The minister informed the media that the cabinet approved two MoUs for cooperation with Qatar in the fields of energy and development of national highways and motorways in Pakistan. These agreements will be signed during Prime Minister Gilani’s visit to that country.

She said the MoU between WAPDA and the ministry of energy of Qatar will Qatari investment in the hydel power generation projects and rehabilitation of existing power plants.

The cabinet decided to bolster cooperation with Qatar and gave a go-ahead to launch comprehensive capacity building and skilled development programmes in the country so that the people could get suitable jobs in the Gulf countries including Qatar.

The cabinet also approved signing of MoU between Pakistan and the Russian Federation on scientific cooperation. It also approved Charted Accountant Amendment Bill, 2011.

The prime minister also took the cabinet into confidence about the legislation to be carried out to validate the by-elections.

The federal cabinet gave instructions to the ministries of interior and states and frontier regions to take initiative on war footing for the repatriation of Afghan refugees to Afghanistan.

The information minister said the prime minister also asked the Interior Division to ensure that the Afghan refugees remain confined to the designated sector I-12 of the federal capital and their activities in that sector and other designated areas should be monitored.

The prime minister also asked the interior ministry to expedite work for setting up of Madrassa Welfare Authority for introduction of uniform syllabus, registration of foreign students and also look into funds being received by them. Secretary interior informed the cabinet that the proposal would be finalised in consultation with all stakeholders.

The cabinet reviewed the status of implementation of its decision vis-a-vis Interior Division and expressed satisfaction that out of 78 decisions, action has already been taken on 69, showing 88% progress in implementation.

The meeting directed interior, law, states and frontier regions and provincial coordination ministries to finalise draft of the National Counter Terrorism Authority bill for presentation in Parliament.

The interior ministry assured the cabinet that it would finalise Islamabad Safe City project at the earliest after consultation with all stakeholders.

The cabinet also decided to observe Eid Millad-un-Nabi and Kashmir Solidarity Day with zeal and enthusiasm.

Afghan containers blockade issue to be resolved in 10 days

ISLAMABAD: Pakistan on Tuesday assured Afghanistan that it would resolve within 7-10 days the issue of 700 Afghan containers held up under the policy to block Nato supply routes. Both countries have also resolved to jack up the current trade volume of $2.5 billion to $5 billion by 2015.

Finance minister Abdul Hafeez Sheikh and his Afghan counterpart Hazrat Omar Zakhiwal said this at a press briefing after the end of a two-day joint economic commission (JEC) meeting.

Sources in the FBR told The News that Pakistan’s security agencies identified about 285 containers used by Nato forces in Afghanistan and took them into custody under the current policy of not letting NATO containers enter Afghanistan. However, Afghan authorities are insisting that the said containers do not belong to Nato forces but are commercial containers belonging to the Afghan business community.

According to these sources, the Frontier Constabulary has taken into custody 285 containers from the US, but the Kabul administration claims that these containers belong to Afghan businessmen and have nothing to do with Nato forces.

Hafeez Sheikh said Pakistan has offered Afghanistan machinery and equipment to develop hydropower, road, construction and mining sectors in Afghanistan. He said Pakistan would help Afghanistan build a hydel power project on the River Kabul. Similarly, OGDCL, SSGC and SNGPL will provide assistance in oil and gas exploration and transmission.

The minister said issues pertaining to transit trade between the two countries under the Afghanistan Pakistan Transit Trade Agreement would be resolved as early as possible. He said insurance guarantees would be further discussed to resolve the issue. He said both countries had agreed to establish a joint chamber of commerce and industry to identify areas for promoting bilateral trade and investment. Both sides have also agreed to establish display centres at Kabul and Karachi for the promotion of bilateral trade.

The Afghan minister said that the potential of enhancing trade between the two countries had unfortunately remained unutilised and the political will in this regard had not translated into tangible results.

The Afghan minister said there were many hurdles for Afghan transit goods from Pakistan and stressed their removal. He said investors from all over the world were coming to Afghanistan but Pakistani investors were reluctant due to misperceptions. He said Afghanistan would welcome Pakistani investment in road, construction and mineral sectors and Afganistan could be a bridge connecting South and Central Asian.

Hafeez Sheikh said that the meeting also reviewed progress on 29 projects being developed in Afghanistan under Pakistan’s $300 million assistance. He said both countries agreed to expedite the completion of the Torkham-Jalalabad highway within one year since 70 percent construction work has already been completed.

He said Pakistan has also asked Afghanistan to provide an encroachment free route to initiate the process for establishing the Chamman-Spinboldak-Kandhar railway line. He said setting up of the Liaquat Ali Khan Engineering faculty, Nishtar Kidney Centre, 2000 scholarships for Afghan students, CASA 1000 and TAPI pipeline were also discussed.

Afghan containers blockade issue to be resolved in 10 days

ISLAMABAD: Pakistan on Tuesday assured Afghanistan that it would resolve within 7-10 days the issue of 700 Afghan containers held up under the policy to block Nato supply routes. Both countries have also resolved to jack up the current trade volume of $2.5 billion to $5 billion by 2015.

Finance minister Abdul Hafeez Sheikh and his Afghan counterpart Hazrat Omar Zakhiwal said this at a press briefing after the end of a two-day joint economic commission (JEC) meeting.

Sources in the FBR told The News that Pakistan’s security agencies identified about 285 containers used by Nato forces in Afghanistan and took them into custody under the current policy of not letting NATO containers enter Afghanistan. However, Afghan authorities are insisting that the said containers do not belong to Nato forces but are commercial containers belonging to the Afghan business community.

According to these sources, the Frontier Constabulary has taken into custody 285 containers from the US, but the Kabul administration claims that these containers belong to Afghan businessmen and have nothing to do with Nato forces.

Hafeez Sheikh said Pakistan has offered Afghanistan machinery and equipment to develop hydropower, road, construction and mining sectors in Afghanistan. He said Pakistan would help Afghanistan build a hydel power project on the River Kabul. Similarly, OGDCL, SSGC and SNGPL will provide assistance in oil and gas exploration and transmission.

The minister said issues pertaining to transit trade between the two countries under the Afghanistan Pakistan Transit Trade Agreement would be resolved as early as possible. He said insurance guarantees would be further discussed to resolve the issue. He said both countries had agreed to establish a joint chamber of commerce and industry to identify areas for promoting bilateral trade and investment. Both sides have also agreed to establish display centres at Kabul and Karachi for the promotion of bilateral trade.

The Afghan minister said that the potential of enhancing trade between the two countries had unfortunately remained unutilised and the political will in this regard had not translated into tangible results.

The Afghan minister said there were many hurdles for Afghan transit goods from Pakistan and stressed their removal. He said investors from all over the world were coming to Afghanistan but Pakistani investors were reluctant due to misperceptions. He said Afghanistan would welcome Pakistani investment in road, construction and mineral sectors and Afganistan could be a bridge connecting South and Central Asian.

Hafeez Sheikh said that the meeting also reviewed progress on 29 projects being developed in Afghanistan under Pakistan’s $300 million assistance. He said both countries agreed to expedite the completion of the Torkham-Jalalabad highway within one year since 70 percent construction work has already been completed.

He said Pakistan has also asked Afghanistan to provide an encroachment free route to initiate the process for establishing the Chamman-Spinboldak-Kandhar railway line. He said setting up of the Liaquat Ali Khan Engineering faculty, Nishtar Kidney Centre, 2000 scholarships for Afghan students, CASA 1000 and TAPI pipeline were also discussed.