Body to scrutinise written off loan cases: Cabinet approves CAA daily wage workers' regularisation

The Cabinet meeting held here on Wednesday, chaired by Prime Minister Yousaf Raza Gilani, approved regularisation of daily wages employees of Civil Aviation Authority (CAA). This was stated by Minister of State for Information Sumsam Ali Bukhari while briefing media after the meeting.
Replying to a host of questions ranging from Karachi tragedy on the day of Aushra to prevailing sugar and CNG issues, he said that the government would not leave any stone unturned to expose those responsible of the incident. About sugar crisis, he said that sufficient wheat stock was available in the country and a policy was being made to ensure availability of sugar to the people at affordable price.
He said that the crushing season has started and the federal and provincial governments would ensure that the commodity is available to the people. The Minister said that implementation of austerity measures would be ensured at top level to set an example for others.
Giving details of the decisions taken in the meeting, he said that the Cabinet approved, in principle, a summary for "regularisation of services of 4,000 daily wages employees of CAA who have completed more than nine months service, and also decided that services of those employees who have not yet completed the required length of service shall be regularised on completion of prescribed length of service.
The Cabinet was also briefed about the status of stocks of wheat, atta and sugar. It expressed satisfaction over the stocks and directed the concerned officials to stabilise the prices of these essential items. In order to undertake scientific, technological and socio-economic research related to the climate change vis-a-vis causes, effects, magnitude and their impact on Pakistan, the Cabinet approved a proposal to establish 'Global Change Impact Studies Centre' as an autonomous body under the Ministry of Environment.
The Global Change Impact Studies Centre shall function under a Board of Governors having representation from concerned public sector bodies. The Centre will create a team of scientists, capable of preparing mathematical models for climate change impacts on extreme drought conditions, temperature, crop growth varieties and preparation of the mitigation plans for adverse situation like flooding, etc.
According to a statement, the Cabinet also considered a report on the affairs of the Industrial Development Bank of Pakistan (IDBP) and the case for its corporatisation and restructuring. A committee comprising Ministers for Finance & Revenue, Law & Justice, and Industries & Production with the Governor, State Bank of Pakistan (SBP), as special invitee, recommended restructuring of IDBP as Industrial Development Bank Limited (IDBL) by insurance of vesting order.
The committee found that current negative net-worth of the bank is Rs 28.170 billion while total deposits are Rs 3.836 billion. The Cabinet directed to fix responsibility on persons who caused losses to IDBP because of their imprudent lending and writing off of loans.
A committee headed by Minister for Law & Justice and comprising representatives of State Bank of Pakistan, an independent banker and an auditor was constituted to scrutinise a random sample from among the written off loan cases so as to establish their propriety.
The committee will conduct a thorough examination of lending process, disbursements, and initiation process of write-off in respect of such cases and fix responsibility so that appropriate action against those responsible may be taken by SBP. The meeting also ratified the decisions taken by Cabinet Committee on Privatisation (CCoP) through public-private partnership (PPP). These include privatisation with the PPP mode for 26 percent of the equity stake.
The main objective of privatisation with PPP is to put national resources and assets to optimal use and in particular to unleash the productive potential inherent in Pakistan's state owned entities (SOEs). A stringent pre-qualification structure will be put in place that will include a contractually binding Business Plan and provisions with regard to management, default, termination, penalties and dispute resolution.
This strategy is based on the rationale that, given the large size, a single offer for total divestment for some transactions would limit the interest of potential investors and consequently affect the level of competition. The ratified decisions also include adequate representation of the Government on the Boards of the privatised entities. Under the new policy, 12 percent shares will be reserved for workers in the privatised entities.
It was decided that the Government would continue to ensure that divestment does not result in reduction in quality of production or services. It will also be ensured that divestments do not result in private monopolies and cartels. The Cabinet ratified the decisions of the ECC meeting held on 15th December 2009.
The Cabinet granted ex post facto approval of the draft MoU and signing of Co-operation Agreement between Jordan and Pakistan to facilitate trade promotion. This agreement will provide a forum for businessmen and investors of both countries to exchange views and help increase trade and investment flows. It may be mentioned that bilateral trade between the two countries is in the range of over $52 million.
In order to further improve bilateral relations with Cuba, the Cabinet ratified the co-operation agreement signed between Pakistan and Cuba. Under the agreement, both parties shall undertake feasibility studies to identify viable investment projects. Both sides will grant scholarships for specialised studies, professional development and technical education and vocational training.
Under the agreement, a joint intergovernmental commission shall be established that shall monitor the implementation of the areas of co-operation as defined in the agreement. The Cabinet granted approval for initiation of negotiations to conclude an agreement between the Governments of Pakistan and Ethiopia for avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
This agreement is aimed at encouraging trade and investment by assuring certainty of tax treatment and removal of double taxation of the same income in the two contracting states. The Cabinet approved signing of MoU between the Ministries of Defence of Korea and Pakistan regarding co-operation in military education exchange. The MoU will enhance military co-operation between the parties through reciprocal exchange of military students.
The Cabinet also granted approval, in principle, for signing MoU between the governments of Qatar and Pakistan in the field of academic research and co-operative activities. The MoU is aimed at enhancing co-operation between Strategic Studies Centre, Qatar, and National Defence University of Pakistan in the field of education and research. The Cabinet granted approval for Pakistan's accession to the Third Protocol amending the Treaty of Amity and Co-operation (TAC) in South-East Asia.
The protocol aims at allowing the accession of the Treaty by the European Union/European Community. TAC promotes perpetual peace, everlasting amity and co-operation among their peoples which would contribute to their strength, solidarity and closer relationship. The Cabinet granted approval, in principle, for draft legislation "Biological & Toxin Weapon Convention (BTWC) Bill 2009" for implementation of the Biological Weapons Convention (BWC).
The UN Security Council Resolution 1540, adopted in April 2004, requires all states to take necessary legislative, regulatory and administrative steps to prevent proliferation of weapons of mass destruction, including biological weapons and their delivery systems and related technologies. Under the new law, no person shall develop, manufacture, design, produce, stockpile, transport, import, export, sell, transfer or otherwise acquire, possess, control or retain a biological weapon.
No person shall knowingly manufacture, develop, design, produce, stockpile, transport, transfer or otherwise acquire or retain, any material, equipment, or technologies which are intended to be used in the preparation of a biological weapon. The law shall also ban delivery designed to use biological agents or toxins for hostile purposes or use in armed conflict.
Violators shall be liable for punishment with imprisonment ranging from 10 to 25 years and with fine up to Rs 10 million. The Cabinet granted approval for initiation of negotiations to conclude an agreement between the GoP and Kenya for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
This agreement is aimed at encouraging trade and investment by assuring certainty of tax treatment and removal of double taxation of the same income in the two contracting states. The Cabinet members offered fateha for the martyrs of Lakki Marwat and Karachi blasts on the day of Aushra. The Cabinet also offered special prayer for rain in the country.