ISLAMABAD - The Federal Cabinet which met in the chair of Prime Minister Imran Khan on Tuesday gave its go-ahead to the government to sign Free Trade Agreement (FTA) with China in order to protect the interest of the local industry.

Briefing reporters after the meeting, Special Assistant to Prime Minister on Information Dr Firdous Ashiq Awan said that a better Free Trade Agreement will be signed with China in order to protect our local industry.

The proposed FTA will be signed by the two countries during three-day official visit of Prime Minister Imran Khan to China beginning from Thursday.

Dr Firdous Ashiq Awan said that Advisor on Commerce Abdul Razzak Dawood briefed the cabinet that 450 Pakistani businessmen will visit China to look for business opportunities that would translate into more production, job opportunities and poverty reduction in the country.

She said that the cabinet members congratulated the Prime Minister on his successful visit to Iran which was extremely important in present context. She noted that the government wants to increase our trade with immediate neighbours to reap the bilateral benefits.  She said the visit also proved successful in removing the misunderstandings between the two brotherly countries.

About the recent increase in the prices of drugs, Special Assistant on Information said that cabinet was informed that efforts are being made to bring the drugs prices down in consultation with all stakeholders.

She said that Special Assistant to PM on National Health Services Dr Zafarullah Mirza briefed the cabinet on his findings regarding increase in prices of drugs and said a meeting with pharma companies and other stakeholders will be held soon to bring down the prices of medicines in the country.

She said the Cabinet meeting was told that additional amount charged by these companies will be recovered by the government and submitted in Pakistan Baitul Maal. This amount will be used to provide free treatment to poor patients of various diseases.

Special Assistant to Prime Minister said the cabinet was briefed on inflation and rising prices of essential items. The cabinet also decided to check on prices of essential items during the holy month of Ramazan and keep an eye on hoarders and cartels. She said the inflation during the last eight months of this government is still less comparing with the same period of previous two governments.

Firdous Ashiq Awan said the Prime Minister directed all ministers to introduce policies in public interest and improve their performance in order to resolve the issues faced by public.

Firdous said the cabinet also discussed the LNG agreements signed by previous government which were expensive and not in interest of Pakistan. She said the new LNG agreements will be transparent and based on competitive pricing.

The cabinet endorsed the policies of Prime Minister Imran Khan and his vision of democracy that is free from corruption and functions only to empower the common man and reduces their issues. Meanwhile, Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh has directed FBR to modify and refine the tax amnesty scheme for Asset Declaration for making it more attractive and persuasive before it is put up to the cabinet for approval.