ISLAMABAD: The federal cabinet on Wednesday approved a proposal granting India the much-talked about 'Most-Favoured Nation' (MFN) status in a move towards normalising trade relations between New Delhi and Islamabad.
Minister for Information Dr Firdaus Ashiq told media at a news conference that the cabinet meeting presided over by Prime Minister Syed Yousuf Raza Gilani took a unanimous decision to grant India MFN status after a comprehensive briefing by the Secretary Commerce on economic benefits of bilateral trade between the two countries. His briefing also eased some members' concerns over relations with India on political, defence, strategic and Kashmir issues.
"The Prime Minister reviewed all the objections and took the cabinet into confidence that it will not hurt our security and the cabinet members unanimously approved this summary sent by the Commerce Ministry," she said. The Secretary Commerce, Zafar Mahmood, stated that both the countries would be required to dismantle non-tariff barriers to move towards normalisation of trade and explained that it was not something new as both the countries had enjoyed MFN status from 1947 to 1965 and signed four agreements.
Being signatories to General Agreement on Trade and Tariff (GATT), he said, both the countries were bound not to display discriminatory attitude in trade with any of the member countries. Responding to questions, the Minister for Information said Pakistan had so far bestowed the MFN status on more than 100 countries and the government would also seek Parliamentary approval to Cabinet's decision to grant India MFN status. She said that the decision taken by the Cabinet would also legalise the ongoing illegal import of Indian goods into Pakistan through Dubai and termed the decision a step "in accordance with the philosophy of Quaid-e-Azam Muhammad Ali Jinnah."
The minister said that Aghaz-e-Haqooq-e-Balochistan Package was the second most important Cabinet agenda item. The minister claimed that the meeting was informed by the Establishment Division that 80 percent implementation of the package had been achieved in all the areas. She said the Cabinet was informed that resource allocation for Balochistan had been increased from Rs 43 billion in 2008-09 to Rs 108 billion in 2011-12 and over 665 prisoners had been released from various jails under political reforms and a dialogue for the return of Baloch exiled leaders had also been initiated. The majority of resolutions - 21 of the total 27 - had been implemented and powers of coastal guards under Customs Act had been withdrawn.
The Prime Minister awarded 1200 scholarship to the youth of Balochistan and 5000 more were in process. The government had settled the longstanding gas development surcharge (GDS) demand of the province. An amount of Rs 7 billion has been allocated for 0.440 million poor identified under the Benazir Income Support Programme (BISP) in Balochistan. The reservations of the provincial government on Saindak Project had already been removed and the project would be transferred to the provincial government in a year's time after the federal government helped it towards capacity building to handle mega projects.
According to a press release, the Cabinet offered Fateha for the departed soul of Begum Nusrat Bhutto and reviewed the implementation status of cabinet decisions pertaining to Commerce Division. The Secretary Finance presented a detailed presentation on Consumer Price Index (CPI) in order to oversee/discuss the trend of prices of essential commodities.
The Cabinet considered and accorded its approval to amendments in the Articles of agreement of the IMF. Board of Governors of IMF had approved certain amendments upon review of quotas and reform of Executive Board. The reforms ensure proper presence of emerging economies both in term of quota representation and size of the Executive Board of IMF. State Bank of Pakistan, in consultation with the Finance Division, had cast a positive vote for the amendment.
The Cabinet considered and accorded its approval to the signing of SAARC Agreement on Rapid Response to Natural Disasters and considered and accorded its approval to the Draft Biological & Toxin Weapons Convention Implementation Bill. The Convention of the Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons and on their Destruction (BTWC), was adopted in 1972. Pakistan is a signatory to the convention. The Cabinet considered and gave its approval to start negotiations and sign Pak-Turkish Media Co-operation Agreement Anadolu and Agency (AA) of Turkey and Associated Press of Pakistan (APP) have agreed to sign an agreement for long term co-operation and exchange of News. The Cabinet considered and gave its approval of Pakistan's Membership of the Forum of Federation. Forum of Federation is a non-governmental organisation registered as a charitable organisation under the laws of Canada.
The Cabinet considered and accorded its approval to Members Election Commission (Oath of office, term, salary, allowance, perks and privileges) Bill, 2011. As no provision has been made in the Constitution or any law regarding oath of office, resignation, tenure of office, terms and conditions of the services of Members of Election Commission, Ministry of Law, Justice and Parliamentary Affairs has drafted a bill in consultation with Election Commission of Pakistan.
The Cabinet considered and formed a committee to look into the Constitution (20th Amendment) Bill, 2011. The Cabinet formed a committee comprising Finance Minister and Minister for Petroleum to look into the Addendum to these Contract Agreements for Extension in the lease period of Saindak Copper Gold Project.