Net Hydel Profit: Punjab granted payment for 1780 MW capacity in province

[Naveed Yaseen]

MUSHTAQ GHUMMAN
ISLAMABAD (October 08 2009): The Cabinet, which met here on Wednesday with Prime Minister Yousuf Raza Gilani in the chair, approved payment of Net Hydel Profit (NHP) to Punjab in respect of hydroelectric station located in Punjab as per constitutional provisions on the pattern of other provinces and AJ&K. There are seven hydropower stations in Punjab producing total 1780 MW.

Official sources told Business Recorder that the summary, which had been submitted by the Ministry of Water and Power, was submitted to the Cabinet after consultations with other stakeholders. Punjab, as major producer of food output, is also seeking royalty on food items, from other provinces.

Sources said that the revised Bill of Gwadar Port Authority (GPA) has been deferred for the second time due to paucity of time. The Cabinet ratified price policy for wheat crop 2009-10, already approved by the Economic Co-ordination Committee (ECC) of the Cabinet on October 6, 2009. The Cabinet noted with satisfaction that policy interventions of 2008-09 had led to major turnaround in wheat production, freedom from wheat imports, and achieved stability in food security.

To sustain growth in wheat production for ensuring food security, the Cabinet approved continuation of last year's guaranteed minimum price of wheat at the rate of Rs 950 per 40 kg. The Cabinet also reviewed the wheat stock situation in the country. The meeting was informed that the country has surplus stocks of wheat with 8.84 million tons available.

The Cabinet ratified the decisions of the ECC of September 15, 2009, in which Regulatory Duty (RD) of wheat products was withdrawn. The ECC in its meeting had approved to withdraw 35 percent RD on export of wheat products. It also approved to allow import of 400,000 tons of urea through private sector, with a subsidy of Rs 750 per 50 kg bag to the private importers of urea on first come first serve basis.

A sum of around Rs 5 billion will therefore be required for subsidy, subject to the condition that urea shipments arrive in the country by October 31, 2009. The subsidy may be paid at the time of release of consignments on submission of bill of lading to State Bank of Pakistan (SBP). The SBP will monitor and withhold the issuance of letters of credit (LCs) on the achievement of set target of 400,000 tons.

The Cabinet granted in principle approval to start negotiations between Pakistan and Hungary for agreement for establishment of joint economic commission. The agreement is aimed at enhancing co-operation in the fields of commerce, industry, food and agriculture, higher education, science and technology, and other fields of mutual interest.

The Cabinet constituted a committee to examine the proposed amendments in the Companies Ordinance 1984. The committee will be headed by the Federal Minister for Finance while other members are Ministers for Law, Interior and Parliamentary Affairs. The committee will submit its recommendations at the earliest.

The Cabinet also granted ex post facto approval to amend Anti-Money Laundering Ordinance 2007. The proposed amendments are necessary to bring the various provisions of the Ordinance in line with international standards.

The Cabinet constituted a committee, headed by the Minister for Finance, to re-examine the amendments in the Chartered Accountants Ordinance 1961 to streamline and strengthen disciplinary process in line with global leading accountancy bodies and best practices. The members of the committee are Ministers for Law, Interior and Parliamentary Affairs. The committee will submit its report in three weeks.

To establish a sound basis for the seed industry in Pakistan, the Cabinet approved draft amendments in Seed Act 1976. The proposed amendments, when approved by Parliament, would make the legislation more effective to encompass present-day requirements and would make it compatible with the WTO regime.

The Cabinet constituted a committee comprising Ministers for Parliamentary Affairs and Population Welfare, Special Assistant to Prime Minister Shahnaz Wazir Ali, and Secretary, Health, to examine the draft of Pakistan Health Research Council Bill 2009. The committee will submit its report in 15 days. The purpose is to make the council an autonomous body to work efficiently and effectively.

The Cabinet ratified the UN Convention against Transnational Organised Crime aimed at improving co-operation on matters of extradition, mutual legal assistance, transfer of proceedings and joint investigations. Adoption of the Convention and its Protocols would help prevent, suppress and punish trafficking in persons, especially women and children; smuggling of migrants by land, sea and air; illicit manufacturing and trafficking of firearms.

The Extradition Treaty between Pakistan and Libya was also ratified. The Cabinet approved draft of 'Code of Civil Procedure (Amendment) Bill 2009 which would amend sub-section (2) of Section 35-A of Code of Civil Procedure, 1908. This clause deals with compensatory costs in case of false and vexatious claims of defences.

This amendment is in line with the recommendations of the National Judicial Policy where it has been recommended that the amount of compensatory costs which a court may award may be enhanced to one hundred thousand rupees to discourage fake litigation. The Cabinet referred to the Cabinet Committee the proposal of the Law Division to amend Section 89-A of CPC for alternative dispute resolution.

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