Federal cabinet approves Kuwait defence pact

The federal cabinet, chaired by Prime Minister Shehbaz Sharif, on Wednesday approved a defence cooperation agreement between Pakistan and Kuwait, along with new designs for currency notes and the introduction of a Rs10 coin.

According to an official statement, the defence agreement was concluded on June 11, 2023, to strengthen military cooperation and institutional ties between the two countries. The Kuwaiti government ratified the agreement on July 19.

The cabinet also approved transferring powers previously delegated to the Khyber Pakhtunkhwa chief minister to Governor Faisal Karim Kundi during the ongoing emergency in the province. The federal government imposed emergency and governor’s rule in KP on October 11.

Under the decision, the governor will oversee routine administrative affairs to ensure the smooth functioning of provincial matters and improve governance. He will also submit a monthly report to the federal government detailing the exercise of these powers.

The cabinet expressed hope that the KP Advisory Council, led by Governor Kundi, would work towards the province’s development, public welfare and restoration of peace and security.

Meanwhile, the cabinet approved new designs for currency notes on the recommendation of the Ministry of Finance. The prime minister was informed that proposals had been invited from artists and designers across the country. A committee established by him also held consultations with relevant stakeholders before finalising the proposed designs.

The new banknotes will feature enhanced security measures to prevent counterfeiting. Modern materials will also be used to improve their durability and extend their circulation life. The cabinet further approved replacing the existing Rs10 banknote with a Rs10 coin.

Addressing the cabinet, Prime Minister Shehbaz Sharif said Pakistan was continuing its diplomatic efforts to restore peace in the Middle East amid growing regional instability and rising international oil prices.

He recalled Pakistan’s recent diplomatic engagements with Iran and other regional countries. He also referred to cooperation under the Makkah Joint Defence Agreement involving Pakistan, Saudi Arabia and Turkiye.

Last month, Chief of Defence Forces and Chief of Army Staff Field Marshal Asim Munir visited Iran alongside Interior Minister Mohsin Naqvi as part of Islamabad’s efforts to facilitate dialogue between Washington and Tehran.

The prime minister’s remarks came after Pakistan’s military spokesperson expressed cautious optimism about the country’s mediation efforts between the United States and Iran.

Shehbaz also discussed the government’s efforts to prevent international oil price increases from placing an additional burden on the public. He said the government had considered increasing fuel prices by Rs15 on Friday but decided to engage oil refineries to absorb the additional cost through their windfall profits.

He said the government would not allow ordinary citizens to bear the full impact of rising petroleum prices.

Discussing the fuel subsidy programme launched in September, the prime minister said it would continue until the end of December. Around Rs28 billion had already been spent under the scheme, which he described as successful and transparent. The Intelligence Bureau was also monitoring its implementation.

On LPG supplies, Shehbaz said the government had ended the previous system of manipulation and was introducing transparent arrangements. He said imported LPG would be auctioned in different lots to encourage competition, with government earnings used to provide relief to consumers.

He added that the government was working to ensure adequate supplies of LPG, liquefied natural gas, petrol and natural gas ahead of winter. Officials were holding regular meetings to address supply challenges caused by disruptions to maritime routes.