Socio-economic development: Govt to spend $1.6b in Balochistan, says PM

Cabinet approves import of LNG from Qatar and electricity from Iran.


Irfan Ghauri April 18, 2014
Prime Minister Nawaz Sharif chairing the cabinet meeting in Islamabad on April 18, 2014. PHOTO: PID

ISLAMABAD:


Prime Minister Nawaz Sharif has said that his government will spend $1.6 on the socio-economic development of Balochistan, which has been in the throes of a low-key insurgency since 2004.


“Establishing peace in Balochistan is a priority of the government to ensure sustainable economic activity in the province,” he told his cabinet colleagues in a meeting on Friday. The cabinet – which met after a three-month hiatus – gave the go-ahead for several projects, including import of LNG and electricity from Qatar and Iran, respectively.



The socio-economic package includes provision of skilled manpower through training of human resource in different sectors, including health and education, he said, adding that he himself would monitor these projects. “The public money is sacred and we should ensure its judicious and efficient spending.”

As Pakistan has already given control of Gwadar port to China, the plan also envisages the investment of $12 billion by Beijing. As part of the economic corridor that will turn Pakistan into a hub of regional cooperation, Gwadar port will be connected through road, rail and fibre links to China to help enhance trade between the two countries.

Premier Nawaz issued directions to complete the Gwadar port extension project on a priority basis. Gwadar is being developed as a model city and a socio-economic package has been planned for it, he said, adding that Gwadar airport and seaport were being developed on modern lines.

LNG terminal at Karachi Port

The cabinet also approved a policy of the Ministry of Petroleum to import Liquefied Natural Gas (LNG) from Qatar and the establishment of a terminal at Karachi port for this purpose. Petroleum Minister Shahid Khaqan Abbasi informed the meeting that all arrangements for LNG projects will be completed by the end of this year.

An official handout issued after the meeting said the cabinet approved the tariff of $0.66/mmbtu for the LNG services project secured through a competitive bidding process by the Petroleum and Natural Resources Ministry. The cabinet also decided that the policy guidelines of the tariff shall be conveyed to OGRA.



Sources privy to the meeting said that some cabinet members had reservations over the proposed LNG import and price mechanism and this triggered a heated debate.

The petroleum minister claimed that the price of LNG is competitive with the international market. He said the agreement has been made with the Qatari company EPTL for a period of 15 years.

Premier Nawaz directed the information minister to review the proposed Right to Information Bill in consultation with the opposition to make it more viable.

The cabinet reviewed the overall political situation in the country, including national security and ongoing process of dialogue with the Taliban. The cabinet endorsed the decisions recently made by the National Security Committee.

The prime minister briefed the cabinet on his recent visit to China and the development projects finalised during the tour, including Pak-China trade corridor for the uplift of the country.

Nisar briefed the cabinet on the overall security situation, dialogue process with the Taliban and ongoing targeted operation in Karachi.

Finance Minister Ishaq Dar gave a detailed briefing on the economic situation of the country and upcoming projects.

The cabinet also discussed the issue of pollution in Pakistani waters. It was informed that Pakistani waters have become a dumping ground for the waste of sea vessels. Nawaz issued directions to clear Pakistani waters of shipping waste.

The cabinet granted its approval to the MoUs signed between Iran Power Generation Transmission & Distribution Management Company (Tavanir) and National Transmission and Dispatch Company (NTDC) in the field of electricity transmission.

List of other projects approved by the cabinet

The cabinet approved the tariff of US$0.66/MMBTU for LNG services project, secured through competitive bidding process by the Ministry of Petroleum and Natural Resources. It also decided that the policy guidelines of the tariff, will be conveyed to OGRA.

The Cabinet further decided that other aspects of the commercial agreement will be settled between the two parties, Sui Southern Gas Company (SSGC) and EPTL of Qatar. Petroleum Minister Shahid Khaqan Abbasi, while briefing the cabinet, said the price of LNG was competitive with the international market. He said the contract will be for 15 years and will provide 200 MMBTU of LNG in the first year and would be increased to 400 MMBTU from the second year.

The cabinet deferred Amendment in CDA Ordinance, 1960. The cabinet considered and approved the Proposed Amendments in the Patent Ordinance 2000 regarding electronic publication of patent journal.

It granted approval, in principle, for the draft Bill for Creation of Joint Maritime Information Organization (JMIO).

The cabinet also approved Amendment in Foreign Exchange Regulation Act, 1947 (FERA, 1947).

It also approved SBP (Amendment) Bill 2010 and the SBP Banking Services Corporation Ordinance (Repeal) Bill 2010.

The cabinet approved Equity Participation Fund Repeal Bill-2014.

The cabinet approved reconsideration of the decision of the cabinet regarding repeal of Section 27B of the Banking Companies Ordinance, 1962.

It deferred the Right to Information Bill, 2014 and the prime minister directed for further consultations with opposition and stakeholders.

The cabinet considered the Constitution (Twenty-First Amendment) Bill 2013 and referred it to the relevant committee for further consideration.

Two amendments were proposed to the Practitioners and Bar Councils Act, 1973. The cabinet approved one amendment in the Legal Practitioners and Bar Councils Act, 1973. However it deferred the second amendment for further deliberations.

The Cabinet considered a bill titled, "The Islamabad Subordinate Judiciary Service Tribunal Act, 2014" and referred it to the Law Division for further review.

Approval, in principle, was granted by the cabinet for negotiations with the Government of the Republic of Turkey on Memorandum of Understanding in the field of environment.

Approval was given to start negotiations and approval for signing of Memorandum of Cooperation between the Chambers of Commerce and Industry of Turkmenistan and the Trade Development Authority of Pakistan.

Formal Approval of the cabinet was accorded for signing of MoU between the Government of Pakistan and People's Republic of China on Raikot-Islamabad section of China-Pak Economic Corridor by China Road and Bridge Corporation (CRBC). It gave approval for signing of Protocol for the Period from Nov 2004 to Nov 2012 and approval for revision of Protocol between the Government of Pakistan and the People's Republic of China for Scientific and Technical Cooperation in Surveying and Mapping.

The cabinet gave approval, in principle, for negotiations of the draft agreement between the Ministry of Defence, Pakistan and the Ministry of Interior, UAE for secondment of qualified technical military personnel (drum majors) to UAE.

It gave approval for signing the Memorandum of Understanding (MoU) between the Government of the Islamic Republic of Pakistan and Government of the United Republic of Tanzania on Defence Cooperation.

The cabinet gave approval for signing of Revised Draft Agreement between the Ministry of Defence of the Russian Federation and the Ministry of Defence of the Islamic Republic of Pakistan on Military Cooperation.

The cabinet gave approval, in principle, for negotiations of the Draft Memorandum of Understanding (MoU) between the Government of the Islamic Republic of Pakistan and the Government of the Socialist Republic of Vietnam on Defence Cooperation.

It considered to grant approval, in principle, for initiation of negotiations to the signing of Agreement between Pakistan and South Africa on Defence Industrial Corporation but deferred the matter. While discussing this agenda item, the prime minister directed that the matter of production in defense sector was of immense importance and the cabinet should be briefed on the matter in detail.

The cabinet gave approval, in principle, to start negotiations on the Agreement on Economic Cooperation between Pakistan and Czech Republic.

It approved initiation of negotiations for signing of Reciprocal Agreement and Memorandum of Understandings (MoU) between the Government of Pakistan and the Government of Qatar.

The cabinet gave, in principle, approval for negotiations of Memorandum of Understanding between the Supreme Audit Institutions of Pakistan and Vietnam on Cooperation on Auditing in Public Sector.

The cabinet gave approval of initiation of negotiations between State Bank of Pakistan and Central Bank of Philippines for signing an MoU on cooperation in the field of banking supervision and exchange of information.

The cabinet gave approval of initiation of negotiations between State Bank of Pakistan and Central Bank of France on signing of MoU on Cooperation in the field of Banking Supervision and Exchange of Information.

The cabinet approved the initiation of negotiation between the State Bank of Pakistan and Central Bank of Kenya (CBK) on cooperation in supervision of supervised institutions.

The Cabinet formally approved Framework Agreement in the field of housing development, signed during the visit of Prime Minister to Turkey on 16-18 September, last year.

The meeting nodded, in principle, to start negotiations between National Productivity Center of Turkey and National Product. The Cabinet also approved, in principle, for starting negotiations regarding bilateral Memorandum of Understanding between the governments of the USA and Pakistan concerning the imposition of import restriction on archaeological material.

It was also approved to start negotiations with the government of the Djibouti for the holders of diplomatic and official passports. The Federal Cabinet approved ratification of an agreement on transfer of offenders signed between Pakistan and Yemen.

The cabinet approved signing of agreement between the governments of the Lao People's Democratic Republic and Pakistan's government visa on exemption for holders of diplomatic and official passports.

An approval for cooperation in the field of Higher Education and Scientific Research between the Ministry of Inter Provisional Coordination of Pakistan and Ministry of Higher Education and Scientific Research of the UAE, was also given.

The cabinet also consented to signing the MoU between the Government of Pakistan and South Africa for cooperation in combating illicit trafficking in narcotic drugs, psychotropic substances and precursor chemicals.

The cabinet gave ex-post facto approval, in principle, to starting negotiations and signing of protocol on compliance of phytosanitary requirements between Federal Service for Veterinary and Phytosanitary Surveillance (Russian Federation) and Department of Plant Protection, Ministry of National Food of Plant Protection and Research, Government of Pakistan on mutual supplies of productions of high phytosanitary risk.

The cabinet permitted, in principle, for entering into an agreement concerning the export of manpower from Pakistan with the Italian government. The signing of MoU between governments of Turkey and Pakistan on sister seaport relation and cooperation was also approved by the cabinet. The Federal Cabinet nodded to starting negotiations and for signing of MoU on cooperation in preventing and combating pollution from ships between the Governments of Pakistan and Iran. On the occasion, the issue of pollution in Pakistan sea waters was also discussed.

The prime minister was informed that the Pakistani Sea has become a dumping ground for ship waste. To this, the prime minister directed Minister for Ports and Shipping to take concrete steps to make the seas pollution free.

The Cabinet approved the signing of MoU in the fields of standardization, metrology, certification, accreditation and the other related activities between Pakistan Standards and Quality Control Authority (PSQCA) and Jordan Institution of Standards and Metrology (JISM).

The Federal Cabinet approved the signing of MoU between Iran Powers Generation, Transmission and Distribution Management Company (TAVANIR) and National Transmission and Despatch Company (NTDC) in the field of electricity transmission.

APP

Published in The Express Tribune, April 19th, 2014.

COMMENTS (1)

Humayun | 9 years ago | Reply

How does Gawadar benefit Balochitsanis vs Pakistanis ?

No a single infrastructure project is named in this pieces.

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