ISLAMABAD: The federalcabinetonWednesday ratified the defence cooperation agreement between Pakistan and Kuwait tofurther strengtheninstitutional linkages between the armed forces of the two countries, according to a handout by the Prime Minister’s Office (PMO).
During a cabinet meeting presided over by Prime Minister Shehbaz Sharif, a transparent and competitive mechanism was also announced for liquefied petroleum gas (LPG) quotas while the powers of the KhyberPakhtunkhwa chief minister, who became non-functional after the imposition of governor’s rule, were transferred to Governor Faisal Karim Kundi.
Detailing the defence pact with Kuwait, an offi-cial handout from the PMO noted that the two countries signed the accord in 2023 to strengthen defence cooperation and institutional linkages between their armed forces.
‘This agreement, which aims to foster cooperation in the defence sector between the two brotherlynations, was concluded on June 11, 2023. The Kuwaiti government had ratified the agreement on July 19, the handout said.
The prime minister, while addressing the cabinet, also pointed to recent diplomatic activity, including two Pakistani delegation visits to Tehran, a visit by Field Marshal Asim Munir, and trips to Pakistan by the Saudi defence minister and the Turkish official Ibrahim Kalin.
He said the talks had been constructive and aimed at easing regional tensions and advancing cooperation under a proposed trilateral arrangement between Pakistan,Turkiye and Saudi Arabia.
LPG reforms Turning to domestic energy reforms, PM Shehbaz announced a competitive and transparent mechanism for allocating LPG quotas to end a decadesold monopoly in the sector.
Under the new system, locally produced LPG will be offered through competitive auctions under proper supervision, while importing companies will also be required to follow prescribed procedures.
‘The revenue generatedthroughthetransparent auction process would contribute to the national exchequer and subsequently be utilised for providing subsidies and relief to ordinary citizens,’ he added.
The prime minister did not mention the closure of the Pakistan-Iran border as a root cause of the country’s LPG crisis, instead calling high international petroleum prices and hurdles in sea routes the main causes.
However, LPG supply has been disrupted due to the closure of Iranian border crossings, resulting in gas cylinders being sold at twice the official rate in the open market.
To prevent winter shortages, he said the government was holding meetings every two to three days to review energy requirements and prepare contingency and coordination plans.
Referring to rising international crude oilprices, the premier said Petroleum Minister Ali Pervaiz Malik, his team, Oil and Gas Regulatory Authority (Ogra) and the relevant committee had taken a timely decision to approach refineries for sharing their windfall profits to avoid passing on a proposed Rs15 per litre increase in petrol prices to consumers.
Appreciating the decision, he said the government’s fuel subsidy programme, launched in September, would continue until the end of December.
‘[A sum of] Rs28 billion hasbeen spent so far,’ PM Shehbaz said, noting that the subsidy programme had benefited around 15 million people, or an estimated 75m people including their families.
He added that the scheme was running ‘successfully and transparently’ under Intelligence Bureau monitoring, though intelligence agencies had identified irregularities at a few petrol pumps and the petroleum minister had been directed to ensure their closure and impose heavy financial penalties on those involved.
Transfer of power On provincial governance, the cabinet transferred the KP chief minister’s powers to Mr Kundi to ensure the smooth execution of administrative affairs, improve governance and handle day-to-day matters during the provincial state of emergency.
The Centre had declared an emergency and governor’s rule in KP on Oct 11 after talks failed with the main opposition and the then-ruling party. The cabinet agreed that Mr Kundi would submit a monthly review report to the federal government on the exercise of these delegated powers.
Welcoming the decision, the cabinet expressed hope that the KP Advisory Council, under the governor’s leadership, will make all-out efforts to ensure public welfare, pros-perity and the restoration of law and order.
Addressing the security situation, the prime minister said the government had finalised a comprehensive Rs160bn development and security package for KP.
He expressed confidence that the sacrifices of the armed forces and law enforcement agencies, along with improved arrangements and provincial cooperation, would help eliminate terrorism.
New currency design On the recommendation of the Ministry of Finance, the cabinet also approved designs for a series of new currency notes and the introduction of a Rs10 coin to replace the existing 10-rupee banknote.
The cabinet was briefed that designs were solicited from artists and designers nationwide following extensive stakeholder consultations conducted by a prime ministerial cabinet committee.
The new notes will feature enhanced security features and advanced materials to curb counterfeiting while significantly improving the currency’s durability and lifespan.
The cabinet also endorsed the Oct 26 decisions of the cabinet committee on state-owned enterprises and ratified decisions taken by the cabinet committee on legislative cases during meetings on Jan 22, Feb 26, Aug 5,18and27,andSept11and22.