ISLAMABAD (March 11 2004): The Cabinet on Wednesday formally rejected Australian wheat as contaminated and declined to make any payment to the Australian firm.

The Cabinet, which met here with Prime Minister Zafarullah Khan Jamali in the chair, noted that the commodity fell short of fulfilling the set standards and was not fit for human consumption.

The Minister for Industries and Production, Liaquat Ali Jatoi, and Information Technology Minister Owais Leghari informed the Cabinet that both Pakistan and Australian governments had nothing to do with the wheat deal.

Jatoi brushed aside the impression created by some reports that in fact the wheat was of Indian origin and the government was to make payment for it.

"There is no Indian connection, nor any scandal involved," the minister asserted.

"The meeting was apprised of laboratory tests, which had detected 'karnal bunt' (fungus) in the wheat which also lacked the required ingredients," he said.

He clarified that a private (Pakistani) firm gave the import order to an Australian firm, and the deal was transparent and was made through open tenders. "Both governments have nothing to do with the matter," he added.

The minister said that under an agreement, the commodity was to be tested before offloading, and through tests it was found that it was contaminated.

A second test, he said, was carried out by Dr Atta-ur-Rehman in the presence of Australian officials, which again proved that the wheat carried fungus.

Leghari said that Indian offer was the lowest, but it was rejected, and the second lowest, of Australian firm, was accepted. However, the Cabinet decided to reject the commodity and to make no payment to the Australian firm, as it was not in the interest of the people.

Pakistan Agriculture Storage and Services Corporation (Passco), he added, had entered into an agreement with a private Australian firm for the commodity's import.

The Cabinet directed Passco to ensure the fulfilment of the contractual obligations.

"The Australian government and media are raising fingers towards Pakistan, which is misplaced. There is no justification whatsoever to make an issue out of it," the minister stressed.

NSC BILL:
The Cabinet decided to place the draft of National Security Bill for consideration of National Assembly in its current session.

ATTA SUPPLY:
The Cabinet reviewed the situation of 'atta' in the country and expressed satisfaction as the supply of 'atta' has improved considerably during the last couple of days resulting in lowering of its prices. The Cabinet was certain that the situation would improve further as the harvest would be in full swing in Sindh and would begin soon in Punjab.

The Prime Minister directed Passco and the provincial governments to speed up procurement centres for wheat from the under-harvest crop areas in an efficient and transparent manner.

He also directed the Ministry of Finance to ensure availability of funds for Passco to undertake its procurement target of 1.4 million tons. Punjab will procure 3.5 million tons, Sindh 0.6 million tons and Balochistan 0.1 million tons.

STEEL, CEMENT PRICE HIKE:
The Prime Minister took note of the increase in the prices of steel and cement, which has been caused by a sharp and chaotic rise in the international prices of steel. He directed the Minister for Finance and the Minister for Industries to take steps to rationalise the prices of steel and cement to reduce the burden on the consumers generally and on the builders of small houses in particular.

The Cabinet approved setting up of a Ministerial Committee comprising Minister of State for Environment Tahir Iqbal and Minister of State for Food and Agriculture Sikandar Hayat Khan Bosan to examine the situation arising from unauthorised construction of houses, dwellings and shops in the prohibited zones and areas of Islamabad, and present its recommendations to the Cabinet.

Proposals by Capital Development Authority for regularisation, relocation and upgradation of 'kachi abadis' will also be incorporated in the report of the Committee for consideration of the Cabinet.

The Prime Minister directed the CDA to be proactive in planning of housing facilities to the people of low-income groups and the dwellers of the 'kachi abadis' in the Federal Capital without causing harm to the environment and with full regard to the civic imperatives.

The Cabinet approved a draft Bill to regulate the manufacturing and trade of Tibb-e-Unani, Ayurvedic, Homeopathic, Herbal and any other non-allopathic medicines.

The Cabinet directed the Ministry of Health to take all appropriate administrative steps for the disposal of medical devices, specially disposable syringes and infusion sets, as they are injurious to health and are major causes of all kinds of hepatitis, HIV and other blood-borne diseases.

The Cabinet approved the allotment of 36 acres land to LMK Resources for establishment of an international standard 'Petroleum Technology Institute' in Islamabad which will provide first class education to approximately 1000 local and foreign students. The Institute will bring direct foreign investment of $ 17 million and it will be the only one of its kind in the whole region.

Courtesy Daily Business Recorder