Federal cabinet approves regularization of CAAs 4,000 employees

Pakistan

Federal cabinet approves regularization of CAAs 4,000 employees

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06 January,2010 09:57 pm

The federal cabinet in principle approved a summary for the regularization of services of daily wages employees of Civil Aviation Authority, and discussed situation of available stock of wheat and sugar in the country. In a meeting chaired by Prime Minister Syed Yousuf Raza Gilani, the cabinet approved the recommendation to regularize more than 4,000 employees who completed more than nine months service and decided that services of those employees who have not yet completed the required length of service shall be regularized on completion of prescribed length of service. The Cabinet was also briefed about the status of stocks of wheat, flour and sugar and expressed satisfaction over the stocks and directed the concerned authorities to stabilize prices of these essential items. In order to undertake scientific, technological and socio-economic research related to the climate change regarding the causes, effects, magnitude and their impact on Pakistan, the Cabinet approved a proposal to establish Global Change Impact Studies Centre as an Autonomous Body under the Ministry of Environment. The Centre shall function under the Board of Governors having representations from the concerned public sector bodies. The Centre shall create a team of scientists, capable of preparing mathematical models for climate change impacts on extreme drought conditions, temperature, crop growth varieties and preparation of the mitigation plans for adverse situation like flooding. The Cabinet also considered a report on the affairs of the Industrial Development Bank of Pakistan (IDBP) and the case for its corporatization and restructuring. A committee comprising Ministers for Finance & Revenue, Law and Justice, and Industries and Production with the Governor State Bank of Pakistan (SBP) as special invitee recommended the restructuring of IDBP as Industrial Development Bank Limited (IDBL)by insurance of vesting order. The committee has found out that current negative net-worth of the bank is Rs 28.170 billion while the total deposits are Rs 3.836 billion.The Cabinet directed to fix responsibility on the persons who have caused losses to IDBP because of their imprudent lending and writing-off of loans. A committee headed by Minister for Law and Justice and comprising representatives of State Bank of Pakistan, an independent banker and an auditor was constituted to scrutinize a random sample among the written-off loan cases so as to establish their propriety. The committee will conduct a thorough examination of lending process, disbursements, and initiation process of write-off in respect of such cases and fix the responsibility so that appropriate action against those responsible may be taken by SBP.The meeting also ratified the decisions taken by Cabinet Committee on Privatization (CCOP) on Privatization through Public Private Partnership (PPP). These include privatization with the PPP mode for 26% of the equity stake. The main objective of privatization with PPP is to put national resources and assets to optimal use and in particular to unleash the productive potential inherent in Pakistans State Owned Entities (SOEs). A stringent pre-qualification structure will be put in place that will include a contractually binding Business Plan and provisions with regard to management, default, termination, penalties and dispute resolution. This strategy is based on the rationale that given the large size, a single offer for total divestment for some transactions would limit the interest of potential investors and consequently affect the level of competition. The ratified decisions also include adequate representation of the Government on the Boards of the privatized entities. Under the new policy, 12 percent shares will be reserved for workers in the privatized entities. It was decided that the Government would continue to ensure that divestment does not result in reduction in quality of production or services. It will also be ensured that divestments do not result in private monopolies and cartels. The Cabinet ratified the decisions of the ECC meeting held on December 15 last. The Cabinet granted ex-post facto approval of the draft MoU and signing of Cooperation Agreement between Jordan and Pakistan to facilitate promotion in trade. This agreement will provide a forum for businessmen and investors of both the countries to exchange views and help increase trade and investment flows. It may be mentioned that bilateral trade between the two countries is in the range of over US$52 million. In order to further improve bilateral relations with Cuba, the Cabinet ratified the cooperation agreement signed between the two countries. Under the agreement, both parties shall undertake feasibility studies to identify viable investment projects. Both sides will grant scholarships for specialized studies, professional development and technical education and vocational training. Under the agreement, a joint intergovernmental commission shall be established that shall monitor the implementation of the areas of cooperation as defined in the agreement. The Cabinet granted approval for initiation of negotiations to conclude an agreement between the Governments of Pakistan and Ethiopia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. This agreement is aimed at encouraging trade and investment by assuring certainty of tax treatment and removal of double taxation of the same income in the two contracting states. The Cabinet approved signing an MoU between the Ministries of Defence of the Republic of Korea and the Islamic Republic Pakistan regarding cooperation in military education exchange. The MoU will enhance the military cooperation between the parties through the reciprocal exchange of military students. The Cabinet also granted approval, in principle, for signing MoU between the Governments of Qatar and Pakistan in the field of academic research and cooperative activities. The MoU is aimed at enhancing cooperation between Strategic Studies Centre, Qatar and National Defence University of Pakistan in the field of education and research. The Cabinet granted approval for Pakistans accession to the Third Protocol amending the Treaty of Amity and Cooperation (TAC) in South East Asia. The protocol is aimed at allowing the accession of the Treaty by the European Union/European Community. TAC promotes perpetual peace, everlasting amity and cooperation among their peoples which would contribute to their strength, solidarity and closer relationship. The Cabinet granted approval, in principle, for draft legislation Biological & Toxin Weapon Convention (BTWC) Bill 2009 for the implementation of the Biological Weapons Convention (BWC). The UN Security Council Resolution 1540 adopted in April 2004 requires all states to take necessary legislative, regulatory and administrative steps to prevent the proliferation of weapons of mass destruction, including biological weapons and their delivery systems and related technologies. Under the new law, no person shall develop, manufacture, design, produce, stockpile, transport, import, export, sell, transfer or otherwise acquire, possess, control or retain a biological weapon. No person shall knowingly manufacture, develop, design, produce, stockpile, transport, transfer or otherwise acquire or retain, any material, equipment, or technologies which are intended to be used in the preparation of a biological weapon. The law shall also ban delivery designed to use biological agents or toxins for hostile purposes or use in armed conflict. Violators shall be liable for punishment with imprisonment ranging from 10 to 25 years and with fine up to Rs. 10 million. The Cabinet granted approval for initiation of negotiations to conclude an agreement between the GoP and Kenya for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. This agreement is aimed at encouraging trade and investment by assuring certainty of tax treatment and removal of double taxation of the same income in the two contracting states. The Cabinet members offered fateha for the martyrs of Lakki Marwat and Karachi blasts on the day of Aushra. The cabinet also offered special prayer for rain in the country.