ISLAMABAD Prime Minister Yousuf Raza Gilani has called for ending unscheduled loadshedding and set up a committee to work out steps for generation of additional power to overcome shortage.

The measures may include setting aside billions of rupees for supplying more oil and gas to independent power producers for generating additional power to bridge the gap for at least the next few days, Information Minister Qamar Zaman Kaira said after a cabinet meeting.

The committee, comprising ministers for information, industry, privatisation, labour and advisers on finance and petroleum, is expected to come up with suggestions by Thursday.

Kaira said the premier had directed relevant organisations to share facts about loadshedding and domestic power generation capacity.

He said that direct subsidies on electricity had been withdrawn to avoid providing undue support to the rich.

The water and power secretary assured the meeting that Mangla Dam would be brought online soon. Repair work at dam is proceeding at a fast pace. He said that Tarbela Dam was now producing an additional 120 megawatts.

Defending the carbon tax, Kaira said it had been introduced in consultation with all political parties and money generated from it would be used for the welfare of the people.

He said that ' tough' decisions taken by the government had created a fiscal space which would enable the government to increase development spending. Commenting on return of displaced people, he said that a schedule would be announced soon by the provincial government.

He said cards had been issued to 60,000 people for distribution of Rs25,000 cash. He said most areas had been cleared of militants but they were still offering resistance in some pockets.

According to him, the prime minister urged ministers and secretaries to review budgets of their ministries and divisions to maintain strict financial control.

Gilani said all secretaries were being instructed to maintain proper accounts and reconcile them with the figures compiled by the Accountant General's office.

The cabinet also approved an agreement on trade in services with China, which was signed on Feb 21, 2009.

The Pakistan Agricultural Storage & Supplies Corporation (Passco) was ordered to procure 15,000 tons of gram to ensure retail price stability.

It also approved the imposition of 25 per cent regulatory duty on import of maize to protect local producers.

An agreement between Pakistan and the United Arab Emirates for abolition of visa for holders of diplomatic and official passports was approved and the cabinet decided to initiate similar negotiations with Poland and Chile.