29 February 2004	Sunday	08 Muharram 1425

ISLAMABAD, Feb 28: The federal cabinet decided on Saturday to reduce electricity tariff for country's domestic, industrial, commercial and agricultural users as an apparent consequence of recent savings made by the Water and Power Development Authority (Wapda) in generation cost.

A cabinet meeting chaired by Prime Minister Zafarullah Khan Jamali told Wapda to cut power rates "as much as possible", Information and Broadcasting Minister Sheikh Rashid Ahmed said at a news conference afterwards.

He said the cabinet also extended the deadline for farmers to repay Zarai Taraqiati Bank (formerly Agricultural Development Bank of Pakistan) loans if they paid a token amount now, and asked the provinces to remove reported shortages of wheat flour.

The minister quoted the prime minister as directing the authorities to ensure peace during the mourning period of Ashura and not to allow anybody to injure the sentiments of any sect.

He said the cabinet appreciated Wapda's performance over the last seven months in reducing power generation cost by Rs8 billion by switching over to natural gas and increasing hydel generation by realising its optimum potential.

The decision to reduce power tariff on domestic, industrial, commercial and agricultural use would make the industry and agriculture competitive and benefit the common man, he said.

"This reduction will give impetus to the country's economy by invigorating industrial and commercial activities in the country through enhanced investment, increased employment and greater production," an official statement said.

It said the cabinet asked Wapda to modernise its system and further cut line losses, which, it observed, were "still higher" and could be reduced considerably by using better technology and improving management.

The minister said the cabinet extended the Zarai Taraqiati Bank loan repayment facility to those farmers who could not pay back by 1999.

"They can now avail of this facility by depositing a token money with the undertaking that they will return the principal amount within a year which will entitle them to waiving off of the interest," the official statement said.

Sheikh Rashid said the cabinet discussed the recent import of a reportedly infected wheat consignment from Australia and asked the prime minister's Adviser on Science and Technology, Dr Attaur Rahman, to coordinate and oversee fresh laboratory tests involving all stakeholders to determine if this were fit for consumption.

The cabinet took notice of reported shortages of wheat flour across the country, and decided to invite the chiefs of all the four provinces to Islamabad soon after Muharram to consider the matter, he said.

He further said that the cabinet called for stern action against those engaging in hoarding, profiteering and black-marketing of flour and for ensuring adequate supplies at a reasonable price.

The cabinet was informed that the Pakistan Agricultural Storage and Services Corporation (Passco) will begin wheat procurement from March 1 in Sindh and the middle of March in Punjab.

The minister said the cabinet reviewed an Access to Justice Programme funded by the Asian Development Bank and decided to set up a high-level nine-member committee to recommend measures for improving the administration of justice and early access of citizens to it.

The committee will consist of finance and justice ministers, Senior Adviser Sharifuddin Pirzada, National Reconstruction Bureau chairman, Chief Justice of Pakistan, and chief justices of the four high courts.

The cabinet expressed its concern over the piling up of pending cases leading to delay in the provision of justice, and directed the committee to monitor the use of a $350 million ADB loan in keeping with the prime objective of revamping the country's judicial system.

Other decisions taken by the cabinet were:

* Approval of an agreement between the Pakistan Mineral Development Corporation and the Metallurgical Corporation of China for the development of Dubbdar lead-zinc deposit in Lasbela district, involving an investment of $72.63 million.

* Approval of an amendment in the Pakistan Navy Ordinance 1961 incorporating penalty clauses as available in the Army Act and the Air Force Act.

* Concurrence to the convention between Pakistan and the Republic of Serbia and Montenegro for the avoidance of double taxation and the prevention and fiscal evasion with respect to taxes on income.