November 20, 2003	Thursday	Ramazan 24, 1424

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ISLAMABAD, Nov 19: The federal cabinet decided on Wednesday to reduce power tariff for domestic consumers, increase the support price for wheat, revamp the Zakat distribution system and release an additional one billion rupees under the Food Stamp Scheme.

Power tariff for domestic consumers has been reduced by 4.42 paisa per unit which will come into effect from November 1, 2003, contrary to the National Electric Regulatory Authority ruling that the tariff reduction should be made effective from the month of October.

The cabinet, which met here under the chairmanship of Prime Minister Mir Zafarullah Khan Jamali, did not pass on the full relief to consumers which had been determined by Nepra, and also withheld the relief approved by the regulatory authority to industrial and commercial consumers.

Under the Nepra Act of 1997, the federal government has to notify the authority’s tariff determination within 15 days.

The cabinet decision said that power tariff for commercial, industrial and agricultural users had also been reduced which would be announced by the ministry of water and power separately.

The cabinet also approved increase in the support price of wheat for the year 2003-2004. The new support price has been fixed at Rs350 per 40kg.

“This would encourage farmers to adopt judicious use of inputs and production technology and would have positive impact on increasing productivity of wheat,” an announcement said.

The cabinet took into consideration the overall increase in the cost of wheat production during the last few years which was seriously undermining the economics of wheat farming.

The cabinet also directed the provincial governments to keep a strict control on prices of flour (atta) so that the consumers could get the product on the approved price.

The meeting decided to revamp the Zakat distribution system. A three-member cabinet committee was constituted to review the functioning of the National Zakat Council and the Zakat distribution system as well as to suggest measures to streamline the system.

The cabinet also approved a proposal to make vehicles imported under the yellow cab scheme transferable without the condition of NOC from the ministry of communications.

The cabinet was informed that the vehicles imported under the yellow cab scheme 11 years ago had outlived their utility and had also become uneconomical for use as public transport.

The meeting decided to withdraw the SRO dated 14-10-1991, and allow the transfer of vehicles imported under the yellow cab scheme in the name of their present owners without involving the NOC from the ministry of communications.

The cabinet decided to release an amount of one billion rupees to provide relief and assistance to the needy and destitute under the Food Stamp Scheme. This allocation is over and above the already approved amount of Rs2.5 billion under this scheme to be distributed during the current financial year.

The meeting also approved a proposal to initiate negotiations with Iran for a free-trade agreement (FTA) without any pre-conditions. This would enable both the countries to negotiate and conclude a free-trade accord in a beneficial manner.

The cabinet approved the initiation of dialogue with Turkey on a preferential trade agreement with a view to negotiating and concluding preferential trade agreement in a mutually beneficial manner.

The meeting was informed that during the visits of the Turkish prime minister and the foreign trade minister to Pakistan earlier this year, both sides expressed their desire to conclude a preferential trade agreement with a view to enhancing trade cooperation and maximizing economic gains.

The cabinet granted ex post facto approval for signing of an agreement on cooperation in the field of science and technology between Pakistan and Morocco. The agreement was signed at Rabbat on July 18, 2003, during the visit of President Musharraf to Morocco.

The meeting was also informed that the agreement on cooperation in the field of science and technology between Pakistan and Morocco provided for exchange of scientists, research workers, specialists and scholars, exchange of scientific and technical information and documentation, organization of joint scientific and technical seminar and courses in areas of mutual interest, joint identification of scientific and technical programmes.

The cabinet approved accession to the convention on international interest in mobile equipment (Cape Town Convention) and the protocol on matters specific to aircraft equipment.

The accession to these two instruments will enable the aviation industry in Pakistan to draw full advantage of international financing which may be on attractive terms due to safeguards provided for the creditors in the convention.

In order to promote mutual cooperation between Pakistan and Turkey in the field of agriculture, the cabinet approved signing of a protocol on scientific, technical and economic cooperation between the Turkish ministry of agriculture and rural affairs and the Pakistan ministry of food, agriculture and livestock.

The protocol is aimed at promoting mutual cooperation in the fields of agriculture, livestock, fisheries, on-farm water management, farm mechanisation, rain-fed/arid agriculture, agricultural marketing, plant and animal quarantine services and macro-economic restructuring of agriculture sector between the two countries.

The protocol will facilitate exchange of agricultural research materials, organization of seminars, conferences and training courses, exchange of experts and joint research. The protocol also envisages establishment of an agricultural steering committee. The proposed committee will aim at establishment of direct contact between public and private sector organizations in the two countries.

The prime minister directed the minister in-charge of science and technology, Dr Attaur Rehman, to prepare a national development strategy for Pakistan particularly focusing on how science and technology could serve as a vehicle for industrial and agricultural development so that a medium and long-term national plan could be formulated leading to socio-economic development and poverty alleviation.