THURSDAY MAY 12: RGST levy after consensus among coalition partners: media briefed on Cabinet decisions

ISLAMABAD: The imposition of RGST depends on consensus with our major allies - PML-Q and MQM - and how far they can go in this regard. "I can't predict it at this stage," said Dr Firdous Ashiq Awan, Federal Minister for Information and Broadcasting. Briefing media persons after the Cabinet meeting here on Wednesday.
She said the government has been trying hard to announce the federal budget 2011-12 till May 28 and in this regard, the stakeholders are being taken into confidence. About US Foreign Relations Committee Chairman Senator John Kerry's visit to Pakistan, she said he will be visiting Pakistan in a few days. "We have to strengthen our relations with the US because it is need of the hour as unilateralism can never bring fruitful results," she added.
To a question about taking Osama bin Laden's issue to the UN, she said such speculations come in the media but these could not be responded unless these are done in writing. She rejected the speculations about any deal on the issue of OBL while referring to media reports about the Interior Minister's visit to Saudi Arabia and Iran.
To another question regarding US access to wives of Osama bin Laden, she said that so far no such request has been made and in case of any request the concerned quarter will decide accordingly. She said the military leadership would brief the in-camera joint sitting of the parliament on Friday about the Abbottabad operation and after that a future strategy would be devised.
Replying to a question regarding the announcement of MQM to hold a referendum against the Abbottabad operation, the minister said, "Not even a single governmental policy can be made on such a wishful thinking." She said the Cabinet meeting presided by Prime Minister Syed Yousuf Raza Gilani took stock of the status of implementation of its decisions pertaining to the Finance Division during the last three years. The Cabinet was informed that so far Cabinet took 92 decisions pertaining to the Finance Division out of which 81 have been implemented while 11 are in the process of implementation.
She said it was the first Cabinet meeting after the oath-taking of the members of PML-Q and MQM. She told media that the Cabinet approved the decisions taken by the Economic Co-ordination Committee (ECC) of the Cabinet of its meeting held on April 11 and 26, 2011. In this regard, a detailed presentation was given during the Cabinet meeting by the ministry of finance on the Consumer Price Index in the country to oversee and discuss the trend of prices of essential commodities. The Secretary Finance informed the Cabinet that the inflation is presently stagnant. The government is determined to reduce the inflationary trend to single digit.
The minister disclosed that the Cabinet was also briefed in detail about the outline of new strategy under consideration for the Budget. The Budget Strategy Paper 2011-2014 was presented during the meeting by the Finance Division. The federal finance minister apprised the Cabinet about the salient features of the Paper. It was informed in the Paper that despite formidable and devastated floods, the economy is bouncing back and there are encouraging developments that augur well for its future performance.
She said it was observed in the meeting that exports have increased by 25 percent in the last nine months and at this pace they are likely to cross $24 billion. Remittances are also showing historic performance and likely to cross $11 billion. Foreign exchange reserves stand at $17.5 billion. These developments have contributed to the stability of the PKR, which is maintaining its value at Rs 85-86 per USD.
The Cabinet approved the Budget Strategy Paper 2011-2014 presented by the ministry of finance which was prepared in consultation with all the stakeholders. According to Dr Firdous, to revive growth at the earliest paper aims at following measures; (i) Fiscal deficit will be contained to 4.5 percent of GDP in 2011-12 and thereafter to be further reduced by 0.5 percent annually; (ii) Tax-to-GDP ratio, estimated at 9.1 percent during the year, will be raised to 10.3 percent over the next three years.
"The Cabinet was informed that as a result of recommended measures the inflation in the country is projected to be lower than 12 percent in 2011-12 and economic growth at 4.2 percent of GDP. The Cabinet also approved the MoU on the setting up of Joint Trade Committee between the Government of Thailand and Pakistan," the minister said.
She said the approval in principle was granted by the Cabinet to start negotiations and signing of the draft agreement on the security of information between Pakistan and the Nato. Also, it was decided to grant approval to start negotiation and signing of the draft 3rd Framework Agreement between Suparco and CNSA on co-operation in space science and technology.
"The agreement on economic co-operation signed between the governments of Pakistan and Bulgaria was also ratified by the Cabinet along with the approval of signing of European Union's Four Financing Agreements by which European Union has offered grant of 80 million euros to Pakistan. The Cabinet also approved Financial Protocol worth euros 33.44 million for extension of water resources for Faisalabad City phase-I," Dr Firdous said.
The minister maintained that the loan agreement with JICA Khyber Pakhtunkhwa emergency road rehabilitation project was also approved by the Cabinet. Also, the credit facility agreement with French Development Agency (AFD) worth euros 26.5 million for funding the rehabilitation of Jabban Hydroelectric Power Generation Project was approved by the Cabinet.
"The Cabinet referred the case to the Council of Common Interests for negotiations with the Ev-K2-NCR on MoU on climate change and adaptation measures. The Cabinet approved initiation of negotiations on MoU for co-operation in the field of housing between the ministry of housing and works, Pakistan and ministry of housing, Indonesia. The supplementary grant of Rs 20 million for the Human Rights Division for Diyat, Arsh and Daman Fund in order to implement the decision of the Supreme Court of Pakistan was also approved by the Cabinet.
The signing of negotiated draft visa abolition agreement between the governments of Pakistan and Chile for diplomatic and official passport holders was also approved," the minister said. The Cabinet approved signing of MoU between the United Nations and the government of Pakistan regarding deployment of formed policed unit in Sudan (Darfur). Approval in principle was granted to start negotiations for Pakistan's membership of forum of federation.
The Cabinet allowed starting negotiations with the Republic of Tajikistan to conclude a MoU on co-operation in the field of vocational training. The Cabinet also ratified the convention between the Islamic Republic of Pakistan and the government of Ukraine for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income.
The minister disclosed that the Cabinet approved initiation and signing of the MoU between the Board of Investment, Pakistan and the Russian National Investment Promotion Agency. "The Cabinet approved initiation and signing of the MoU between the Board of Investment, Pakistan and the Evras SA Russia International. To initiate and sign the MoU between the Board of Investment, Pakistan and Gazprom Russia International was also approved by the Cabinet.