ISLAMABAD: Amid simmering tensions with the Taliban regime in Kabul, PM Shehbaz Sharif on Wednesday said Pakistan would not tolerate cross-border terrorism as he urged neighbouring states to devise a joint plan for regional peace and trade.

The remarks by the PM came days after Pakistani jets bombed militant havens in two provinces of Afghanistan, prompting skirmishes between border forces.

`We will not tolerate any kind of terrorism from across the border,` PM Shehbaz told a meeting of the federal cabinet on Wednesday.

`Unfortunately, terrorism has reared its headagain. The reality is that despite such great sacrifices and resources, our martyrs and troops are risking their lives to eliminate terrorism,` he said.

However, he underscored Islamabad`s desire to exist peacefully with its neighbours. `We want to... engage in trade and commerce and develop our relations but unfortunately, if a neighbour`s soil is used for terrorism [in Pakistan], this is intolerable.

Requesting neighbouring states to devise a joint plan against terrorism with `sincerity`, the PM said: `I am hopeful that our neighbouring countries will carefully consider my invitation.

Charter of Economy Taking various important decisions in the meeting, the PM announced that he along with other federal cabinet members have decided to forgo their salaries and other perks and privileges in line with the government`s austerity measures.

Earlier, President Asif Ali Zardari and Interior Minister Mohsin Naqvi had also decided the same.

PM Shehbaz also called for national unity, stressing that political stability was vital to bring economic stability to the country. `We need investments, for which we need to create a suitable environment in Pakistan, economically [and] politically, and create unity.

`After the proposal of a charter of economy, we should also propose a charter of unity,` the premier said, recalling the offer he mentioned in his victory speech in parliament to bring down the political temperature.

Speaking about the staff-level agreement secured with the International Monetary Fund for the release of the last tranche under the Standby Arrangement, the PM said: `The country is compelled to secure another IMF package. We need a new programme, not with happiness, but out of necessity... Slowly, we will break away from taking loans`.

The PM said the government would adopt a zerotolerance policy against power thieves, tax evaders, and corrupt elements. `The new government with fresh mandate will work diligently to enhance foreign direct investment, expand tax net, minimise tax evasion, reduce public debt, eliminate power theft, and implement stern austerity measures in the government departments,` he added.

PM Shehbaz regretted that trillions of rupees were being evaded by the mafias. Such mafias, he said, run businesses worth billions of rupees but they pay zero tax due to undocumented transactions. With the digitisation of the FBR, such mafias would be exposed and apprehended, he said. He said tax cases to the tune of Rs2.4 trillion were pending either in the tribunals or the courts which needed to be concluded as early as possible. `I request the chief justice of Pakistan to help early conclusion of all such subjudice cases,` the PM said.