The federal cabinet on Wednesday approved a defence cooperation agreement between Pakistan and Kuwait, aimed at strengthening institutional ties between the armed forces of the two countries.
The decision was taken during a cabinet meeting chaired by Prime Minister Shehbaz Sharif. The cabinet also approved a transparent and competitive mechanism for allocating liquefied petroleum gas (LPG) quotas and transferred the administrative powers of the Khyber Pakhtunkhwa chief minister to Governor Faisal Karim Kundi.
According to an official statement issued by the Prime Minister’s Office, Pakistan and Kuwait signed the defence agreement on June 11, 2023, to enhance cooperation in the defence sector and strengthen institutional links between their armed forces. The Kuwaiti government ratified the agreement on July 19.
During the meeting, Prime Minister Shehbaz also highlighted recent diplomatic engagements, including visits by Pakistani delegations to Tehran, a visit by Field Marshal Asim Munir, and visits to Pakistan by the Saudi defence minister and Turkish official Ibrahim Kalin.
He said the discussions had been constructive and focused on reducing regional tensions and promoting cooperation under a proposed trilateral arrangement involving Pakistan, Turkiye and Saudi Arabia.
The prime minister announced a competitive and transparent system for allocating LPG quotas, aimed at ending the long-standing monopoly in the sector.
Under the new mechanism, locally produced LPG will be sold through supervised competitive auctions, while importing companies will also be required to follow prescribed procedures.
Shehbaz said revenue generated through the auction process would go to the national exchequer and subsequently be used to provide subsidies and relief to ordinary citizens.
Addressing the country’s LPG supply challenges, the prime minister attributed the crisis mainly to rising international petroleum prices and disruptions in maritime routes. However, the closure of Iranian border crossings has also affected supplies, leading to LPG cylinders being sold at nearly twice the official rate in some open markets.
He said the government was holding meetings every two to three days to assess energy requirements and develop contingency and coordination plans to prevent shortages during winter.
Referring to rising global crude oil prices, Shehbaz praised Petroleum Minister Ali Pervaiz Malik, his team, the Oil and Gas Regulatory Authority (Ogra) and the relevant committee for approaching refineries to share their additional profits. The move, he said, would help prevent a proposed Rs15 per litre increase in petrol prices from being passed on to consumers.
The prime minister also confirmed that the government’s fuel subsidy programme, launched in September, would continue until the end of December.
He said Rs28 billion had been spent under the programme, which had benefited around 15 million people, or approximately 75 million individuals when their families were included.
Shehbaz described the initiative as successful and transparent, adding that the Intelligence Bureau was monitoring its implementation. However, intelligence agencies had identified irregularities at a few petrol pumps, prompting the petroleum minister to ensure their closure and impose heavy financial penalties on those responsible.
The federal cabinet approved the transfer of the Khyber Pakhtunkhwa chief minister’s powers to Governor Faisal Karim Kundi to ensure the smooth management of administrative affairs during the provincial emergency.
The federal government had imposed governor’s rule in the province on October 11 following the failure of talks with the opposition and the then provincial ruling party.
Under the arrangement, Governor Kundi will submit monthly reports to the federal government reviewing the exercise of the delegated powers.
The cabinet expressed hope that the KP Advisory Council, under the governor’s leadership, would work towards public welfare, prosperity and the restoration of law and order.
Addressing the security situation, Prime Minister Shehbaz said the government had finalised a comprehensive development and security package worth Rs160 billion for the province.
He expressed confidence that the sacrifices of the armed forces and law enforcement agencies, combined with improved security arrangements and provincial cooperation, would help eliminate terrorism.
The cabinet also approved designs for a new series of currency notes and the introduction of a Rs10 coin to replace the existing 10-rupee banknote, following a recommendation by the Ministry of Finance.
The meeting was informed that designs had been invited from artists and designers across the country after consultations with relevant stakeholders by a special committee formed by the prime minister.
The new banknotes will incorporate enhanced security features and advanced materials to prevent counterfeiting and improve their durability and lifespan.
Additionally, the cabinet endorsed decisions taken by the Cabinet Committee on State-Owned Enterprises on October 26. It also ratified decisions of the Cabinet Committee on Legislative Cases made during meetings held on January 22, February 26, August 5, 18 and 27, and September 11 and 22.
