Rupee will stabilise next month, cabinet told

Ministers okay multi-modal air-road corridor for the Afghan Transit Trade

ISLAMABAD:

The federal cabinet was informed on Thursday that all necessary steps were being taken to appreciate the value of the rupee and hopefully the Pakistani currency would be stabilised against the US dollar next month.

The cabinet meeting, chaired by Prime Minister Shehbaz Sharif via a video link from Lahore, received a briefing from Finance Minister Miftah Ismail about the recent fall in the rupee value in the inter-bank market.

The finance minister told the cabinet that the economic growth rate in the country would be better during the current fiscal year than last year because of the tax incentives provided by the government to various sectors, including the agriculture sector.

Ismail said that those measures were expected to reduce imports, increase employment and boost exports due to local production. He added that a substantial increase in industrial production and development of the agriculture sector was being ensured.

The cabinet appointed Aftab Sultan, a retired Police Service of Pakistan officer, as the chairman of the National Accountability Bureau (NAB) for a 3-year non-extendable term. The NAB chairman is appointed in consultation with the prime minister and the opposition leader.

The cabinet approved a multi-modal air-road corridor for the Afghan Transit Trade on the recommendation of the Commerce Ministry. The ministers also approved the signing of the Trade in Goods Agreement between Pakistan and Turkey.

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Through this agreement, Pakistan and Turkey will get better access to each other's services and investment sectors. Turkey will provide concessions on 261 tariff lines to Pakistan, including an immediate zero rating on 123 items. Pakistan offered concessions on 130 tariff lines to Turkey.

With the agreement, the trade volume between Pakistan and Turkey will increase to $5 billion. The prime minister appreciated the efforts of the Commerce Ministry regarding the agreement.

The cabinet approved the transfer of funds to the Afghanistan government for the operations, maintenance, supply of equipment and staff salaries of the Pakistani hospitals in Afghanistan.

The cabinet accepted the resignation of Federal Lands Commission Chairman Babar Yaqub Fateh Muhammad. A cabinet committee will decide about the appointment of the new chairman of the commission.

The cabinet was informed that transparent procurement of urea and wheat was being ensured. Special care had been taken to ensure that the best quality could be purchased at the lowest price. The ministers appreciated the import of urea at a price as low as $100 per ton.

The cabinet approved the decisions taken in the meetings of the Economic Coordination Committee and the Cabinet Committee on Legislative. Shehbaz directed for the formation of a cabinet committee to suggest names for the board of directors of the State Bank of Pakistan.