ISLAMABAD, June 2: The federal cabinet on Wednesday expressed serious concern over the recent incidents of terrorism in Karachi and envisaged some administrative changes to improve the situation , Information Minister Sheikh Rashid Ahmed told newsmen after a cabinet meeting.

However, he said, the cabinet did not consider any proposal to remove the governor or to impose governor's rule in Sindh, adding that the administrative changes would be effected within a week.

The cabinet, which met with Prime Minister Mir Zafarullah Jamali in the chair, resolved to take effective steps to establish the writ of law and to bring to book culprits involved in the acts of terrorism.

The cabinet increased the support price of paddy crop for the year 2004-05 to Rs479 per maund from Rs452 for basmati and Rs222 per maund from Rs208 for Irri. The minister brushed aside rumours about any in-house change at the federal level and said: "Mr Jamali is sitting in the cabinet as prime minister and will continue to do so till God permits."

Answering a question, Sheikh Rashid said the issue of changing Sindh governor did not figure in the cabinet meeting nor was any proposal to replace the chief minister discussed.

The cabinet was informed that a special development package for Fata was being prepared and included in the budget. NWFP Governor Iftikhar Hussain Shah briefed the meeting on the situation in Fata with particular reference to the Wana operation.

Prime Minister Jamali reiterated that measures being taken in Fata to flush out foreign militants were in the interest of peace, security and stability of Pakistan and were not aimed at appeasing any foreign power.

He said integrity and security of Pakistan took precedence over everything and the government would not relent on its policy of cleansing the country of all foreign elements who were using this country to pursue their political agenda.

Mr Jamali emphasized that the people of Fata were patriotic and deserved support and sympathy. The government, he said, would pursue the path of dialogue and development.

During the briefing on the Fata situation, ministers asked the NWFP governor a number of questions about possible consequences of military operations. The prime minister asked the finance ministry to evaluate the development needs of Fata in consultations with the governor and provide special funds for poor people.

He asked the ministry of water and power to take steps to provide drinking water and electricity to the people of Fata. Responding to a question about an APNS statement, the minister said he would try to resolve the issue between newspaper owners and employees in an amicable manner after the budget approval, and hoped that the Wage Board award would be implemented.

Mubarak Zeb Khan adds: The federal cabinet has formally approved the Customs duty concession given to India on additional 223 items under South Asia Preferential Trade Arrangement (SAPTA) to enhance the volume of trade between the two countries.

An official source in the commerce ministry told Dawn on Wednesday that the duty concession would be available from July 1, 2004. Indian government had already approved the concessions on the same items in March 2004, added the official.

The duty concession given to India on 223 items were agreed during the 4th round of trade preferences negotiated at Katmandu in Dec 2003 between the officials of the two countries.

The total number of items on which Pakistan has so far given concession to India rose to around 463 at the sixth digit level (the ranking of this category of items on the list containing all categories of items).

Besides, Pakistan has also added 60 new items to the positive list and also allowed duty concession on them. With these the total number of items rose to 746 at sixth digit level on the positive list for trading with India.

The official said that of the total 223 items, Pakistan has given 10 per cent concession on 216 items to India and 20 per cent concession on 7 items. The concession given on products includes: chapter 26 of Pakistan Customs Tariff - mineral ores; chapters 28-29 - raw material and intermediary goods for the pharmaceutical industry; chapter 37-40 - rubber and its accessories; chapter 45 - corks and allied goods; chapter 52 - cotton yarn; chapter 74 - copper bars and rods; machinery for industrial use; and chapter-87 - industrial cargo vehicles and parts.

Similarly, the official said, India has given concession on 262 items at the sixth digit level to Pakistan. With these the total number of concessional items to Islamabad rose to around 632 at the same level from New Delhi under the same arrangement. He said India has given Pakistan 10 per cent concession on 235 items; 20 per cent on 18 items; and 25 per cent on 9 items.