The issue of power shortage dominated the Cabinet meeting with the Prime Minister taking strong exception to the situation directed the ministerial committee to meet in the afternoon and find out as to what possible measures in the short term could be taken to tackle the crisis.
The Prime Minister also clarified before the Cabinet for not giving approval to increase petroleum products price saying that with the introduction of new system, he had nothing to do with the increase or decrease in petroleum products rates.
The Water and Power Secretary briefed the Cabinet on the power supply situation in the country particularly the loadshedding. He informed the meeting that the sudden shortage is caused due to accidental technical fault at Mangla Dam. He said that work is under way round-the-clock to repair the cable at Mangla Dam. He said the powerhouse will start supply at its full capacity soon. In Tarbela Dam, he said, power generation has been enhanced and now 120 MW extra power is being generated.
The Prime Minister stressed that public should be informed about the exact power situation in all parts of the country and directed the Ministry of Water and Power to do away with unannounced loadshedding Giving details of the Cabinet meeting to the media at a briefing, Information Minister Qamar Zaman Kaira said it has been decided to impose 25 percent regulator duty on the import of maize in view of bumper crop to protect the domestic farmers.
The minister said that the ministerial committee to be headed by the Advisor to Prime Minister on Finance Shaukat Tarin was directed to prepare short term recommendations to overcome the power shortage following breakdown of Mangla powerhouse. The breakdown created a shortfall of 1100 MW, he said. He said the Prime Minister wanted equal sharing of loadshedding and directed that there should be no unscheduled loadshedding.
Kaira said the Cabinet also approved that Passco should procure 15,000 tons gram and store it as strategic reserve to ensure stability in its price. The Cabinet also approved bilateral free trade agreement with China that was signed during the recent visit of President Asif Ali Zardari. This would also include services sector and facilitate the investors of the two countries and generate more job opportunities.
Replying to questions, the minister said that schedule for IDPs' return would be announced by the provincial government. He said many areas in Swat have been cleared but pockets of resistance still exist. He said the government has so far distributed more than 60,000 cards for financial assistance to displaced families.
The minister said the government was not pocketing profit from the increase in petroleum prices. The new mechanism for fixing the petroleum prices was formulated and adopted in the Finance Bill because of criticism on old formula. He said the carbon tax is fixed and will not change with fluctuation in prices.
Meanwhile, a handout said that the Prime Minister in his opening remarks to the Cabinet underlined that the ministers along with the secretaries should review the new budget of their respective ministries/divisions to ensure that the allocated budget is spent according to the requirements with a well-disciplined financial control and in line with the financial rules and regulations.
He directed all the federal secretaries who are the Principal Accounting Officers of the ministries/divisions/organisations to ensure proper system of maintenance and reconciliation of their accounts on a monthly basis with the Accountant General's office to improve the financial discipline and ensure that the government funds are spent judiciously and with financial propriety.
Gilani said these measures would help in curtailing re-appropriation, supplementary grants or excess expenditure at the end of the financial year. While taking serious notice of political influence by a number of government servants by approaching parliamentarians as well as other non-official persons to intervene on their behalf in different matters concerning them especially the service matters, the Prime Minister directed the government servants that they are not allowed to approach members of the Parliament in any matter as per Rule 19 of the Conduct Rules, 1964.
He further directed that henceforth all those officers violating this rule will be dealt with strictly and action will be taken against them under Removal from Service Ordinance and the Conduct Rules, 1964. He directed the ministers to ensure strict implementation of the directive. He said the government is in the process of formulating a system of rewards for outstanding civil servants.
The Cabinet meeting approved in principle to initiate negotiations for visa abolition agreements with the governments of Poland and Chile for diplomatic and official passport holders. The Cabinet approved signing of visa abolition agreement with the UAE for diplomatic and official passport holders.
The Cabinet granted ex post facto approval for the signed MoU with the Republic of Sudan in the field of sports as well as granted approval for signing of MoU with the Republic of Cuba in the field of sports. The Cabinet directed the Ministries of Finance, Commerce and Privatisation for inter-ministerial consultation to further improve the agreements.