ISLAMABAD, Nov 26: The federal cabinet on Wednesday discussed the economic recovery plan against the background of a bailout package approved by the International Monetary Fund and expressed satisfaction that the danger of default had been averted.

A meeting of the cabinet presided over by Prime Minister Yousuf Raza Gilani was informed that most of the tough steps proposed by the IMF had been addressed and the package would not have any negative effect on the economy.

According to sources, the cabinet discussed strategic matters, including resentment over frequent US drone attacks, and recommended more effective diplomatic measures to stop violation of the country’s border.

“The cabinet disapproved a summary moved by the establishment division for increasing the age-limit for CSS examination,” a handout said. The prime minister said he could have rejected the proposal himself but he had asked the ministry to present it to the cabinet.

He said it was necessary to keep the age-limit at the present level to attract talented fresh graduates and select the best from among them.

He said the government was not considering any proposal to increase the retirement age of civil servants.

The cabinet allowed the ministry of labour and manpower to start negotiations with Italy on job placement of Pakistanis and immigration matters.

The minister for water and power informed the cabinet that there was not enough water in dams to meet the needs, but said that efforts would be made to ensure adequate supply to farmers.

The prime minister advised the ministers to facilitate media access to information.