TFA with trade bloc of South American states ‘MERCOSUR’ given ex-post facto approval

ISLAMABAD: The federal cabinet on Tuesday gave ex-post facto approval of the Trade Framework Agreement between Pakistan and trade bloc of South American countries – MERCOSUR – with a view to enhance trade ties with the South American nations.

Chairing a meeting of the federal cabinet, Prime Minister Shehbaz Sharif expressed the commitment to bringing economic growth and stability in the country.

“We have to provide productive employment and reduce expenditures, in addition to shrinking circular debt in gas and power sectors,” he said, emphasising the need to advance in this direction with urgency.

He also underscored the need to control and eliminate evasion and corruption in revenue collection, as well as to end smuggling. “There is also seriousness and commitment towards this end,” he said, expressing his confidence that the country will achieve its destination.

The prime minister further stated that the requirements and conditionalities of the International Monetary Fund (IMF) will be met on time and expressed confidence that its board will approve Pakistan’s loan programme. “We should remember this will be the last IMF programme,” he said and emphasized that Pakistan would stand on its own feet.

He also expressed satisfaction over gradual reduction in the inflation rate, adding that it came down to a single digit of 9.6 percent in the month of August, compared to 27 percent of the corresponding period last year.

Describing it as a “very good” achievement, the prime minister commended the Finance Ministry and other relevant ministries for their efforts in this regard.

According to a statement of the PM Office, the federal cabinet, in its meeting also gave ex-post facto approval of the Trade Framework Agreement between Pakistan and trade bloc of South American countries called MERCOSUR.

The trade bloc comprising countries such as Brazil, Argentina, Uruguay, and Paraguay, is commonly referred to as the Southern Common Market. The federal cabinet also ratified the Trade Framework Agreement.

With regard to the framework agreement, the prime minister said South American countries could be a good market for Pakistani goods but the Pakistani economy had not yet been able to reap the benefits of that market.

He directed that all agreements and memorandums of understanding (MoUs) related to the economy should be expedited.

The cabinet also approved the signing of a bilateral political consultation MoU between the Albania’s Ministry of Europe and Foreign Affairs and the Ministry of Foreign Affairs of Pakistan.

The cabinet also ratified the Convention on the Privileges and Immunities of the Secretariat, its staff, and representatives of member states of the Conference on Interaction and Confidence Building Measures in Asia 2010.

Besides, the federal cabinet also constituted a committee to discuss the drafts of the “Religious Tolerance and Interfaith Harmony Policy” that will present its report within a month after consultation with all stakeholders.

The meeting also endorsed the decisions of Cabinet Committee on Legislative Cases (CCLC) made in its meeting on August 26, 2024.

Copyright Business Recorder, 2024