Cabinet clears US aid bill: 100 percent hike in postal rates approved

ISLAMABAD, The Cabinet on Wednesday formally cleared the much-debated Kerry-Lugar Bill (KLB), along with an explanatory note, and allowed 100 percent increase in inland postal tariff from November 1, 2009. Prime Minister Yousaf Raza Gilani, who presided over the meeting, said that the United States (US) has adopted 'Enhanced Partnership Act with Pakistan Bill, 2009', better known as the Kerry-Lugar Bill. The non-military aid to Pakistan has been tripled through this legislation and the US President has been authorised to annually provide $1.5 billion to Pakistan till 2014. The Bill also advocates an additional $7.5 billion over the subsequent half decade, he added. After the meeting, Minister for Information Qamar Zaman Kaira, flanked by the Minister of State for Information, Samsam Bukhari, Information Secretary Ashfaq Gondal and Principal Information Officer (PIO) Rasheed, briefed journalists about the decisions taken by the Cabinet in the Prime Minister Secretariat. Kaira said "All concerns of military and opposition parties in and outside the parliament have been clarified in the explanatory note. If we want to get it (financial assistance) we will accept the Bill and if we do not want it, we will not accept it." He said that the government would accept the verdict of the Parliament on what Nawaz Sharif is terming as 'notorious' National Reconciliation Ordinance. He also mentioned other ordinances in the past, making a not so oblique reference to the Sharif family deal with Musharraf. About whether the government would side with former Attorney General Latif Khosa or the Supreme Court, he said that the government "honours the courts". At the same time, Khosa is also an important PPP member, he added. Kaira said that security equipment, contracted from the Chinese government, would arrive on October 25 or 26 and after the installation of the equipment and scanners, checking of vehicles would become easier. According to him, the government is well aware of commuters' hardships. He said that the Cabinet had appreciated the performance of Interior Minister Rehman Malik, the Interior Ministry and other law enforcing agencies. He did not respond to a journalist's comment that in the civilised world if any Minister performs poorly he is fired, but in Pakistan the Cabinet appreciates his role. He also assured the journalists of fairplay in the election of AJK Prime Minister, adding that the Prime Minister's candidate, Farooq Haider, was the one who played main role in ousting Attique. He cited the Prime Minister as saying that the forthcoming election in AJ&K would be held in a most transparent and fair manner, and no interference would be allowed in the process. He refuted the allegations that army troops were killing innocent people in South Waziristan operation. "Our troops are being martyred and injured; do you think they are being attacked by innocent people?" he questioned. With regard to closing of educational institutions across the country after suicide attacks in Islamic University Islamabad, Information Minister said that the government would chalk out a security plan in consultation with the private institutions. "This is the first time when a Shariah department of an Islamic University has been hit by terrorists. It's a situation of high alert," he added. He denied that all Ministers were enjoying heavy security while general public has been left to the mercy of terrorists. Regarding local bodies' dissolution, he said the government has allowed the provincial governments to deal with this system as per their requirements. "Kerry Lugar bill was a burning issue and has been debated in both Houses of Parliament. The concerns on its conditionalities were conveyed to the US government. The explanation sent to the US Government attached with the Bill has been clarified by the Foreign Minister in the National Assembly and Senate," an official statement quoted Prime Minister as saying. The Cabinet ratified the decision of the ECC meeting held on September 29, 2009 and October 06, 2009 respectively. The Cabinet approved the signing of articles of agreement for establishment of ECO Reinsurance Company as agreed between Pakistan, Turkey and Iran in the expert group meeting held in Islamabad. The agreement is aimed at reducing foreign exchange outflow on insurance and reinsurance services and shall improve the standard of insurance services in these countries. The Cabinet also granted, in principle, approval for negotiating MoU between Pakistan and Germany in the field of defence. For combating illicit trafficking and abuse of narcotic drugs and psychotropic substances, the Cabinet gave in principle approval for initiation of negotiations on an agreement between Pakistan and Ukraine on co-operation in combating illicit trafficking and abuse of narcotic drugs, psychotropic substances and their precursors. The Cabinet granted approval for initiating negotiation on the draft agreement with Tajikistan in the field of sports. The Cabinet ratified bilateral road transport agreement signed between Pakistan and Turkey. The Cabinet approved the draft Carriage of Goods by Road Bill 2009 in pursuance of legal provisions of the UN conference on trade and development. The bill specifies documentation of contract carrier, carrier's rights and responsibilities, liabilities of the carrier, claims of consignee including method of disposal, and settlement of disputes. The Cabinet approved a draft bill aimed at granting degree awarding status to Dawood College of Engineering & Technology, Karachi. The Minister for Education will be Pro-Chancellor of the university. In order to make the domestic postal tariff cost-based, the Cabinet approved revised tariff for inland post. This includes increase in initial postage on an ordinary letter from Rs 4 to Rs 8 with proportionate increase in rates of other categories of inland postage. Draft bill for the establishment of Pakistan Council of Renewable Energy Technologies was also approved. The Cabinet also approved draft bill for Restructuring/Reorganisation of Federal Statistical System of Pakistan. The proposed Bill is aimed at ensuring a unified law and merger of the present data collection organisation, Agricultural Census Organisation, and the Technical Wing of Statistic Division into an autonomous Pakistan Bureau of Statistics. The Statistics Division was also directed to prepare data protection law to ensure the secrecy of data/statistics. Minister for Labour and Manpower informed the meeting that workers' remittances during the current quarter increased 20 percent--from $1.8 billion to $2.2 billion--as compared to the corresponding quarter of last year. Earlier, addressing the Cabinet, Prime Minster Gilani said that in the recent terrorist attacks in Peshawar, Kohat, GHQ, Police Training Centres at Manawan and Bedian, FIA's Office in Lahore and the latest in the Islamic University in Islamabad have sent shock waves all around the country. The Prime Minister assured the nation that these cowardly acts of terrorists would not go unpunished, and said that "we are even more resolute in our commitment to eradicate the evil of militancy from our country". The Prime Minister also assured the nation and the international community that Pakistan's nuclear infrastructure is totally safe and secure and these terrorists pose no threat to its safety. He said that the government is mindful of the fact that challenges to our national security call for enhanced measures with strong commitment from all of us including the political leadership (both in the government and opposition) army, law enforcing agencies and the civil society. The public has displayed monumental courage against all odds and he assured them that the government is on the road to achieve the desired objectives. He said the government has launched the military operation in South Waziristan Agency, considered the hub of terrorist activity. These terrorists are operating and continuously challenging the writ of the Government. The political leadership in and outside the Parliament has been taken on board. The operation has started successfully and the government will achieve its objectives. The Prime Minister said that as the challenges are greater, perhaps the sacrifices would be higher. He implored the people to have courage and patience, to strengthen the hands of the valiant Armed Forces who are fighting a war for the security of the country's future and for the children of the country. US Senator John Kerry, during his visit to Pakistan, personally explained the viewpoint of United States with the clarification that US respects the sovereignty and integrity of Pakistan. The Prime Minister reiterated that the democratic Government is fully cognisant of the value of the sovereignty and integrity of the country and will never compromise on it. Similarly, national pride in its institutions would never be allowed to be humbled. On the incident of suicide attack in Iran, he said it was an unfortunate incident of suicide bombing, in which dozens of people including top commanders of the Elite Revolutionary Guards of Iran were killed. He said that the brotherly country has alleged that Pakistan's soil was used for the attack which is unfortunate as Iran and Pakistan have enjoyed brotherly relations for decades and Pakistan has never allowed any group in any form to use Pakistani soil for such heinous acts. Therefore, he strongly condemned this brutal incident, shared the grief and sorrows of Pakistan's brothers and sisters in Iran and conveyed his government's resolute commitment to support the Government of Iran in its efforts to unearth the perpetrators of the crime. Dilating upon the economic situation of the country, the Prime Minister said that compared to the turbulent year of 2008 the economy has seen a turnaround in 2009. All major indicators are pointing to greater economic stability ahead. Foreign exchange reserves have grown to $14.5 billion (covering 05 months of import) in September from $6.5 billion a year earlier which has helped to support the rupee. Headline inflation in August printed 10.7 percent year-on-year, which is the lowest level in 18 months. Significant tangible gains have been made in improving the security environment including the successful conclusion of Military Operation in Swat. These developments have restored the confidence in the economy. Almost $275 million of investment has flown in the stock market since last June reversing 18 months of capital flight. "We hope that the GDP will grow to 3.3percent during the CFY as forecast in the budget". About his recent visit to China to participate in the Conference of Shanghai Co-operation Organisation (SCO), he said that he had held meetings with the President and Prime Minister of China, Prime Ministers of Russia, Uzbekistan, Turkmenistan, Senior Vice President of Iran, Vice President of Afghanistan, Chairman Senate of China and heads of Chinese major financial and business institutions. He said Pakistan's relationship with China has withstood the test of time. It is deep, historic and shares the long term vision of peace and security for the region. Chinese government has assured its utmost support in formulating comprehensive strategies to control terrorism based on which they have committed to providing overwhelming assistance. There was complete uniformity of views on all subjects under discussion with the top Chinese leadership. These issues included the security situation in the region, defence matters, energy, trade and enhanced Chinese investment in Pakistan. Similarly, the Russian Prime Minister supported resumption of Indo-Pak dialogue and agreed to play proactive role in economic development of Pakistan. Both China and Russia have also appreciated Pakistan's efforts to eradicate militancy and terrorism and assured their full co-operation in the matter. He also informed the Cabinet that the Turkish Prime Minister would be paying an official visit to Pakistan on October 24-26. During his stay he will also address the Joint Sitting of the Parliament. He is also expected to visit earthquake affected areas.