Cabinet decides to make report on contracts of IPPs public

Published April 22, 2020
Cabinet formally approved tax exemption for the construction industry. — AFP/File
Cabinet formally approved tax exemption for the construction industry. — AFP/File

• Govt to send 8m anti-malaria tablets to seven countries
• Approves tax exemption for construction, allied services
• National Commission on Minorities reconstituted

ISLAMABAD: The federal cabinet on Tuesday decided to make public the findings of an inquiry commission report on Independent Power Projects (IPPs) and order their forensic audit.

The cabinet formally approved tax exemption for the construction industry, services provided by property developers as well as real estate dealers and agents.

The meeting of the cabinet, which was chaired by Prime Minister Imran Khan, decided to send eight million tablets of anti-malaria chloroquine to ‘friendly nations’, namely the United States, the United Kingdom, Saudi Arabia, Qatar, Turkey, Italy and Kazakhstan. The government had earlier banned the export of anti-malaria medicines twice this month to stockpile them in case of their possible use to treat Covid-19 patients.

“Today the cabinet decided to make public Mohammad Ali Commission report [on IPPs contracts], which indicated illegalities and irregularities,” announced Special Assistant to the Prime Minister on Information and Broadcasting Dr Firdous Ashiq Awan while addressing a post-cabinet meeting press conference.

She said Special Assistant to the PM on Commerce Abdul Razzaq Dawood and Special Assistant to the PM on Petroleum Nadeem Babar left the cabinet meeting when the commission’s report was unveiled before the federal cabinet. “When recommendations of the reports were presented before the cabinet both Nadeem Babar and Abdul Razzak Dawood left the meeting to keep themselves away from this process,” she added.

“Prime Minister Imran Khan said no one is above the law and vowed to take action against those involved in the scam,” she said.

Federal Minister for Planning and Development Asad Umar in a separate press conference told the media that some government institutions were involved in the scam. He said in order to ensure the people that no one was being spared, a powerful commission of inquiry was being formed to be headed by a person with good repute. “The commission of inquiry will be empowered to conduct forensic audit for which the required budget will be given so that it can complete the job in 90 days,” he announced.

He said the cabinet decided that only those involved in the ill-practices due to which people had paid a heavy price would be taken to task, while other industrialists and investors who had contributed to overcome electricity crisis would be spared.

1991 order withdrawn

In another significant move, the cabinet withdrew the 1991 order of the Ministry of Finance about housing facility for government employees under which they could retain official accommodation for five years after their retirement on completion of 25 years of service.

About the export of anti-malarial drug, Dr Awan said the government had a surplus stock and thus the federal cabinet decided to send millions of tablets to the “friendly nations” to help them in their time of need.

“One million Chloroquine tablets will be sent to Saudi Arabia and the US each, five million to the UK, 500,000 to Turkey and Italy each, 700,000 to Kazakhstan and 300,000 to Qatar,” she elaborated.

The SAPM said PM Khan informed the cabinet that leaders of some countries had called him and expressed the desire to import the tablets from Pakistan following some encouraging results in treating coronavirus.

“Pakistan has always been asking these countries for something or the other. So for the sake of humanity and to improve Pakistan’s credibility and face value, this is a good chance to help them in this time of need and improve the country’s image in the international world,” she said.

She said Pakistan had some 40 million tablets in stock and possessed the raw material to make 40 million more for local consumption.

About relief given to the construction sector, Dr Awan said the cabinet approved tax exemptions for the construction sector. “Taxes on services which come under the Islamabad Capital Territory (Tax on Services) Ordinance 2001 have been amended and exemptions provided as five per cent tax on construction services, taxes on services provided by property dealers and real estate agents and taxes on services provided by property developers have been reduced to zero,” she said, adding that investors, labourers, electricians and plumbers were protected under the amendment to the legislation.

Minorities commission reconstituted

She said the cabinet approved reforms in the National Commission for Minorities Act, 1992. She said: “Prime Minister Imran Khan directed that under the reforms, the commission should constitute a majority of minorities instead of Muslims and the chairman should also be from among the minorities.”

She said the commission would comprise two Muslims, two Hindus, three Christians, one Sikh, one Parsi and one member from the Kalash community while the chairman of the commission would also be from among religious minorities.

Later, the SAPM criticised the opposition’s role in the pandemic and said a “political statement” was being made. She was referring to the National Accountability Bureau’s warning to Pakistan Muslim League-Nawaz president Shahbaz Sharif after which the opposition party demanded “live broadcast of questioning from him” during his appearance on Wednesday.

She said the opposition members had suddenly started gracing media screens and became representatives of the opposition leader rather than of the people who had elected them. She advised them to talk to the people about Covid-19 pains rather than NAB pains.

Published in Dawn, April 22nd, 2020

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