Federal Cabinet discusses tough economic conditions

• Cabinet approved issuance of Ijara Sukuk bonds
• The foreign minister briefed on the FATF situation
• Cabinet discussed urea import, GSP+ agreement

ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday chaired a meeting of the federal cabinet and discussed the tough decisions being taken in the wake of the ongoing economic situation.

The Federal Cabinet approved the issuance of the Ijara Sukuk bonds in the domestic and international markets to support the government’s budgetary position and promote Islamic banking industry in the country.

Addressing a press conference after the cabinet meeting, Minister for Planning, Development and Special Initiatives Ahsan Iqbal said the information regarding assets and other details about the programme would be available on the website of Finance Division.

He said the cabinet also discussed the matter of shortage of edible oil in the country and acknowledged the efforts of minister for industries and his team for setting sail an edible oil ship from Indonesia for Pakistan.

He said the prime minister thanked the Indonesian president and congratulated the industries minister, who went to Indonesia and talked to the Indonesian president.

FATF situation

As regards the Financial Action Task Force (FATF), Foreign Minister Bilawal Bhutto Zardari and Minister of State for Foreign Affairs Hina Rabbani Khar briefed the cabinet that Pakistan had met all the requirements of the FATF and hoped that soon after the visit of FATF team to Pakistan, the country would be out of the grey list.

The cabinet observed that after coming out of the grey list, international trade and other restrictions would be completely eased out and Pakistan would be able to expand its trade across the world.

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It was informed that in 2019, the army chief had formed a core cell, which played a vital role in coordinating the institutional and ministerial efforts to complete the FATF’s action plans.

The cabinet observed that while sitting in the opposition, the present coalition government parties also played a key role in the legislation process regarding the FATF matters.

The prime minister directed all his cabinet members to acknowledge and praise all the institution concerned as it was not possible without collective efforts.

Urea imports

The prime minister directed to ensure supply of urea to farmers on priority, and if there was any shortage, efforts should be expedited to import fertilizer from the friendly countries such as China.

He observed that the world over, all supply chains of commodities such as wheat, coal, and oil were badly disrupted due to the Ukraine-Russia war. He, however, expressed the resolve that government would take timely actions to avoid any disruption in the supply chains in Pakistan.

On the recommendation of Commerce Ministry, the cabinet formed a committee to review the Trade Organization Act, 2013. The committee would comprise of the commerce minister as convener, and ministers for aviation, railways and industries as members.

On the recommendation of Health Ministry, the cabinet also approved reduction in the price of the Remdesivir injection, which is used for the COVID patients, from Rs 2,308 to Rs 1,892. The Health Ministry informed the meeting that it would come up with more recommendations to reduce the prices of more essential medicines.

GSP Plus Agreement

The cabinet also reviewed the GSP Plus agreement singed in 2013 under which Pakistan had got the facility for ten years in exports to the European Union.

The meeting was also briefed on the key elements of proposed new EU GSP (2024-2034). It was informed that all the ministers concerned were in contact with the EU authorities.

The cabinet expressed its satisfaction that almost all political parties had their representation in the current coalition government, therefore, meeting all the conditions required for the GSP Plus agreement would be more easy.

The prime minister directed all the relevant ministries to ensure timely inking of the agreement for EUGSP (2024-34).

He said the PTI government had knowingly avoided to take tough decisions and put the economy on the verge of collapse.

He said the current government was committed to revive the China Pakistan Economic Corridor (CPEC), and attract foreign investment that would help put the country on the path of progress and development.

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