Cabinet ratifies Pakistan-Kuwait defence pact, approves new currency note designs

ISLAMABAD: The federal cabinet on Wednesday ratified the Pakistan-Kuwait Defence Cooperation Agreement, signed on June 11, 2023, to strengthen defence ties between the two countries.

The Kuwaiti government had ratified the agreement on July 19, 2026, the Prime Minister’s Office said. The pact provides a framework for expanding cooperation between the two countries in the defence sector.

The cabinet also approved the transfer of powers delegated to the Khyber Pakhtunkhwa chief minister to Governor Faisal Karim Kundi for managing day-to-day affairs during the governor’s rule and emergency in the province.

The governor will submit a monthly report to the federal government on the exercise of these powers.

The cabinet expressed hope that the KP Advisory Council, under the governor’s leadership, would work for the welfare and prosperity of the people and help restore peace and security in the province.

On the recommendation of the Finance Ministry, the cabinet approved designs for new currency notes. Artists and designers from across the country had been invited to submit proposals, while a committee constituted by the prime minister held consultations with stakeholders.

The new notes will have enhanced security features to prevent counterfeiting and use modern materials to improve their durability. The cabinet also approved replacing the Rs10 banknote with a Rs10 coin.

Addressing the cabinet meeting, Prime Minister Shehbaz Sharif said Pakistan was continuing diplomatic efforts to promote regional peace and reduce tensions, while his government was taking steps to shield the public from rising global petroleum prices, maintain fuel supplies during winter and tackle terrorism.

He said a fuel subsidy programme would continue until the end of December, with around 75 million people having benefited so far and approximately Rs28 billion disbursed under the scheme.

وزیرِ اعظم محمد شہباز شریف کی زیرِ صدارت وفاقی کابینہ کا اجلاس آج اسلام آباد میں منعقد ہوا.

وفاقی کابینہ نے خیبرپختونخوا میں انتظامی امور کی سہل انجام دہی اور گورننس کی مزید بہتری کیلئے وزیر اعلی کو تفویض شدہ اختیارات کی صوبے میں ایمرجنسی کی مدت کے دوران روزمرہ کے امور کی انجام… pic.twitter.com/cMBpEs9Bc8

— Prime Minister's Office (@PakPMO) November 4, 2026

The prime minister also said the government had prevented a proposed Rs15-per-litre increase in petrol prices by asking refineries to absorb the additional cost, while announcing measures to end what he described as the monopoly in LPG imports.

Sharif said Pakistan was making sincere diplomatic efforts to promote peace and stability in the region, which had been affected by tensions and rising international oil prices.

He said a Pakistani delegation had visited Tehran twice during the preceding week, while Chief of Defence Forces Field Marshal Syed Asim Munir had also travelled to Iran for discussions involving senior officials from Pakistan, Saudi Arabia, Iran and Turkiye.

He said the discussions also covered an agreement between Pakistan, Saudi Arabia and Turkiye and ways to promote greater regional cooperation.

The prime minister said the government had launched the fuel subsidy programme to protect people from the impact of higher international petroleum prices.

He said around 15 million people had used tokens under the programme and, assuming an average household size of five, approximately 75 million people had benefited.

The government had provided around Rs28 billion in subsidies, he said, adding that the programme was operating successfully and transparently.

Sharif said the government had also prevented the burden of a Rs15-per-litre increase in petrol prices from being passed on to consumers following a rise in international prices the previous Friday.

He said the petroleum minister and his team had held negotiations with refineries and persuaded them to absorb the additional cost instead of transferring it to the public.

The prime minister warned that petrol pumps found manipulating the subsidy scheme would face strict action, directing the petroleum minister to shut down such outlets and punish those responsible.

Shehbaz says LPG import monopoly era over

Sharif said the government had ended what he described as the monopoly of those who had earned billions of rupees through LNG imports, adding that LPG imports and distribution were now being organised through a competitive and transparent system.

He praised the deputy prime minister, energy minister, finance minister and their teams for introducing the new arrangements, saying state-owned entities, including Pakistan State Oil (PSO) and Pakistan Refinery Limited (PARCO), would play a role in managing the process.

He said LPG imports would be opened to competition, while locally produced LPG would be auctioned in lots. The government would use the proceeds from the auctions to provide subsidies and pass on the benefits to consumers, he added.

Rs160bn development package for KP

The prime minister said the government had announced a Rs160 billion development package for Khyber Pakhtunkhwa, with security given priority.

He said a large number of terrorists had been killed in the province and vowed that federal and provincial governments would work with security and law enforcement agencies to eliminate terrorism.

Sharif described KP as one of Pakistan’s most beautiful provinces and praised its people for enduring decades of terrorism and making sacrifices. He said Balochistan had also faced terrorism for a long time.

He recalled that terrorism had been eliminated in 2018 but had unfortunately resurfaced, expressing confidence that it would now be defeated through coordinated efforts.

Govt working to ensure winter fuel supplies

Sharif said the government was holding meetings every two to three days to review challenges arising from disruptions to maritime routes and their impact on energy supplies ahead of winter.

He said officials were examining the availability and supply of fuel, LPG and other energy sources to ensure that the country’s requirements were met.

The government would make every possible effort to maintain supplies of LPG and petroleum products, keep power plants operational and contain the impact of rising prices, he added.

The prime minister also congratulated Finance Minister Muhammad Aurangzeb on his appointment as chairman of the Group of 24 (G24), saying Pakistan would present its position effectively at international forums.

He further congratulated the nation on the successful test of an indigenously developed air-to-air missile, crediting Field Marshal Asim Munir and the teams and institutions involved in the achievement.

Petroleum Minister Ali Pervaiz Malik also briefed the cabinet on arrangements for LPG imports.