ISLAMABAD - The federal cabinet was informed on Monday that inflation rate during the past three months has fallen from 15.6 per cent to 12.9 per cent and China offered to sell six submarines to Pakistan, and the cabinet has given go ahead to the Ministry of Defence to hold talks. Briefing the media after the federal cabinet meeting chaired by Prime Minister Syed Yousuf Raza Gilani, Information Minister and Broadcasting Firdous Ashiq Awan said that the cabinet was also told that external financing during past six months has fallen from 375 billion to 80 billion which is 79 pc reduction. To a question, the minister said that PPP leadership always followed politics of reconciliation. She said that President Zardari not only telephoned Nawaz Sharif to enquire after his spouse, but also directed the Pakistan High Commission to receive him at the airport. She said that despite political differences, the party have to keep national interests over political interests.No doubt there are hurdles in the way of politics of reconciliation, but we have to overcome these hurdles, the minister said. To another question, she said that the PPP gave sacrifices for the sovereignty of institutions and restoration of superior judiciary was part of the party manifesto. Ruling out chances of collision among state institutions, she said that all institutions should work under their parameters. About MQM, she said it was an ally of the PPP and the government was trying to take all political forces along, and MQM cannot be ignored. They are not quitting Sindh government and at the federal level they have some reservations, which would be removed soon and the nation would hear good news in this regard. While replying to a question, she said that Prime Minister has said that in the changed scenario in Punjab, the PPP will get a chance to play constructive role of opposition. She said that protest over horse-trading in the province was a democratic right. She said that all institutions are in the process of evolution and no person believing in democracy can think of insulting others mandate. On the issue of US citizen Raymond Davis, she said that court will decide the matter of immunity and no discussion was held on the matter as it is sub judice. Dr Firdous Ashiq said that PPP was as patriotic as any other party, and would continue to represent the masses sentiments. About Presidents address to the Joint Sitting of the Parliament, she expressed the hope that all political forces would follow the parliamentary traditions. Minister for Information Firdous Ashiq Awan said the cabinet expressed deep solidarity with the earthquake victims of Japan and assured the people and government of Japan that people and government of Pakistan are with them in this hour of trial. She said that the government of Pakistan is ready to help Japanese people and would dispatch medical relief, mobile hospitals and all available resources to them. Dr. Firdous informed that two C-130 planes are ready to leave for Japan and are awaiting clearance to leave. She remarked that Pak-Japan friendship is time-tested as Japan has always helped Pakistan in the hour of need. We are part and parcel as we have strong bonds of strategic and economic ties, she said. The minister said the cabinet also reviewed the implementation of its decisions by the ministries and no pending work should be left. The recommendations of Economic Coordination Committee (ECC) were fully endorsed by the cabinet, she added. She informed that the cabinet also reviewed some Memorandums of Understandings different countries. These MoUs include the purchasing of conventional submarines from China which is part of defence cooperation between the two countries, she added. The minister informed the media that after consultations between the two countries, Pakistan will purchase six submarines from China. The other MoUs include Pak-Turkey co-operation for the promotion of youth exchanges and establishment of joint cooperation with Ukraine. The cabinet also discussed the enhancement of arts and creative study with Sri Lanka, she remarked. About Kerry-Lugar Bill, the minister informed that the cabinet has ratified the Bill under which the US would provide $1.5 billion annually and $7.5 billion in five years time. She informed that the cabinet also proposed amendment in Bar Council Act, 1973 under which anyone can provide direct financial support to the bars in the country. Dr. Firdous said that the Cabinet was also briefed about the Libyan crisis and it was informed that till now 4,900 Pakistanis have been safely repatriated. The minister told that Minister of State for Foreign Affairs Hina Rabbani Khar briefed the Cabinet about the recent meeting of the Gulf Cooperation Council which supports Pakistans vision for peace in the region. She said that the Prime Minister informed the cabinet about the political situation in the country including the issue of Seraiki province. The Prime minister asked the cabinet ministers to highlight the three years performance of the PPP regime and advised them to take part in Minister online programme so that the masses could directly question them. Ministry of Information in collaboration with Ministry of Finance would share detailed information about increase in consumer price of commodities with media soon, the minister said. Earlier, his opening remarks, the prime minister reiterated that Raymond Davis issue would be resolved in the best national interest and according to the aspirations of the nation. No fake documents are being prepared to grant diplomatic immunity to the US national or shady deals being made behind the scenes against public sentiment and law of the land, he added. The government is functioning within the domain defined by the Constitution and fully respects the judiciary, he said. Gilani said the cabinet unanimously dispels the impression that the PPP-led government is in any mood of confrontation with any states institution, pointing to a plots to stoke clash among state organs, saying Atmosphere of uncertainty was being created by certain quarters about the possibility of confrontation between states institutions. The prime minister recalled that the PPP in its 40 years of struggle has stood up for the protection of states institutions. He said in Punjab, PPP despite serious reservations on various grave issues of governance tried to maintain a working relationship with the ruling PML-N but, unfortunately, this did not continue. He said the history shows that PPP had always stood for principles of fair play and did not compromise on issues of national importance even at the cost of lives of its leaders. The prime minister said the PPP introduced politics of tolerance, magnanimity and democratic norms. They have been in the Opposition before and are not scared to sit on Opposition Benches again. However, he emphatically declared that the PPP will not be part of any conspiracy which aims at derailing the system and will never buy loyalties of opposition members through horse trading. He said today there is a need of politics of reconciliation, harmony and tolerance. Constitutionalism should be every political partys cherished goal. Politics of confrontation should be shunned for which all democratic forces need to show sincerity of purpose, maturity, sagacity and allowing space to their opponents for expressing their views. He referred to massive earthquake followed by He told the cabinet that during his meeting with US Special Representative for Pakistan and Afghanistan Marc Grossman, the issues of mutual interest came under discussion. He was reminded that long-term Pak-US relations cannot be adversely affected by isolated acts of individuals and the two countries should remain focused on eliminating extremism from this region. About murder of Shahbaz Bhatti, he said it not only tarnished the soft image of Pakistan but also dented the states agenda of creating interfaith harmony and stressed that the murder was a national loss. He said investigation of the case will look into all aspects, including security lapses, and those held responsible would not go unpunished. Since this is the second targeted murder of a high profile colleague, he expected the interior minister to identify loopholes in the security arrangements and suggest corrective measures. He directed that lapses should not be ignored and those held responsible for any slackness on their part should be taken to task. The prime minister prayed for the departed souls of Bhatti, Ch Khalid Javed Ghurki, husband of Federal Minister Samina Khalid Ghurki. Gilani said during the last three years numerous MoUs and agreements have been signed but the ministries have been sending routine responses which do not reflect the true spirit behind signing of these agreements. He said that had these agreements been properly executed the economy, social sector as a whole and physical infrastructure would have significantly improved the enabling environment required for development in all spheres of life. He urged the Cabinet colleagues to bring on record all the Agreements/ MoUs signed so far, give an update on the current status and a road map for achieving the targets as agreed with our foreign friends. He said the PPP=led governments performance will be judged by deeds, not by words. Expressing solidarity with Japan, he said Japan is a very generous friendly country and one of the main donors which has funded extensively in economic and social development projects of Pakistan. It provided around US $ 20 million for relief & rescue operation last year when Tsunami in Japan and said the government and the people of Pakistan share grief, agony and sorrows faced by the government and people of Japan. He said assessing the situation and will provide any assistance that was possible within our means.