ISLAMABAD - Federal Cabinet on Wednesday approved the bill for the abolition of graduation condition for candidates contesting national and provincial assemblies elections. Supreme Court has already given its verdict on the case removing the condition of graduation qualification and the government has to implement and obey it, said Minister for Information Qamar Zaman Kaira while briefing the media about the cabinet meeting that was held earlier in the day with Prime Minister Yousuf Raza Gilani in chair. Kaira said the summary had been moved by Election Commission for approval of the Federal Cabinet. Pakistan was the only country which had such kind of condition for contesting elections, the minister added that even in mature democracies there was no condition of graduation as qualification for contesting elections for any House of the Parliament. He said that the Cabinet had allowed the Ministry of Finance to initiate consultation process for finalisation of draft legislation on Netting of Financial Contract Bill 2009. Kaira was of the view that the objective of legislation was to strengthen the domestic financial sector, provide additional risk transfer mechanism and instill confidence for cross-border financial transactions. Legislation shall be made on the pattern of International Swaps and Derivatives Association. Master agreements have already been introduced in many countries of the world and proved a source of stability and confidence for the markets, he said adding that in the absence of law, overseas parties hesitated to enter into financial transactions with counter parties in Pakistan. Qamar Zaman Kaira said that a committee had been constituted to evaluate the performance and utility of various organisations of the federal government as well as possibilities of merger where required. He said that the basic objective of the committee, to be headed by Advisor on Finance, was to ensure transparency, good governance and austerity. It would be ensured that all employees of such organisations which are merged would be absorbed in various institutions as per their length of service and qualifications, said the minister. He said that a committee was also constituted comprising Federal Ministers for Privatisation, Petroleum and Natural Resources, Interior, Law and Overseas Pakistanis and Advisor on Finance to look into the matters concerning Etisalat on issuance of Long Distance International (LDI) License to China Mobile Pakistan and 3G spectrum auctions. He said that the cabinet had also approved August 18 to be observed as Tree Plantation Day. He said that in order to promote economic relations with Iran, the cabinet approved two Memorandums of Understanding (MoUs) between Pakistan and Iran regarding trade exhibition and cooperation for promotion of bilateral trade. The cabinet also approved initiation of negotiations for an agreement between Pakistan and Qatar regarding military personnel deputised with Qatari Amiri Guard, he said. He said that to enhance and strengthen the existing bilateral relations with friendly countries, the meeting granted in-principle approval to the draft MoUs with Libya and France respectively. Replying to another question, he said the government believed in good governance and would never tolerate violation of merit. He said that in pursuance of Supreme Courts recent verdict, the government if required would bring ordinances in the Parliament. He said that the cabinet strongly condemned the Gojra incident and expressed deep grief and sorrow over the loss of life and property in the incident. He said that the meeting appreciated Minister for Minorities, Shahbaz Bhatti for his efforts in defusing the situation. The Minister said that law enforcement agencies were holding an inquiry into the matter. A judicial inquiry is also underway and those who are responsible for the incident would be taken to task, he added. He also appreciated the role of media on war on terror and hoped it would also help promote inter-faith harmony. The Prime Minister, he said stressed the need to promote inter-faith harmony and directed the Ministry of Interior to take immediate steps to avoid recurrence of such incidents. According to Qamar Zaman Kaira, Prime Minister briefed the cabinet about his recent meeting regarding law and order and austerity drive which was attended by all the four chief ministers, Prime Minister AJK, Chief Executive, Northern Areas, all Chief Secretaries and IGPs. He said that the Prime Minister directed the cabinet members that austerity should be practised and started from the top and the masses should see and feel that the government was sincere in this regard. He said that the cabinet had also ratified the decisions of the ECC meetings, which included revision of Kandanwari Gas Price Agreement. The meeting also approved Revision of Model Petroleum Concession Agreement 2009, he added. Incentives for introduction of Ethanol-10 blended fuel in Pakistan were also approved. It was approved that Petroleum Levy will be applicable at the reduced rate of Rs 8.5 per litre on the Ethanol component of E-10, the minister told the media. He said that the meeting also approved deferment of deduction of six per cent withholding tax on advance payment to rental power projects and extended the GoP guarantee amounting to Rs 3 billion regarding KESCs financial improvement plan for a period of one year. The AJK government was advised to extend validity of Letter of Support for New Bong Hydropower Project up to October 31, 2009 and for Rajdhani Hydropower project up to June 30, 2010 respectively, said the minister.