The Cabinet, which is scheduled to meet on Wednesday, is expected to extend lease contract agreement of Saindak copper gold project beyond 2012, sources in Petroleum Ministry told Business Recorder.

Sources said that Metallurgical Corporation of China (MCC), which was given contract in 2002 for ten years, has submitted a formal proposal, seeking extension in lease period.

They said that MCC, Saindak Metals Limited (SML), and Government of Balochistan (GoB) have negotiated the contents of the agreement after the parties have agreed to extension in the lease period beyond October 2012, with some modifications.

Addendum to the lease agreement was signed during the visit of Prime Minister to China on May 17-20, 2011, as agreed by GoB, SML and MCC and duly vetted by the Ministry of Law.

However, Prime Minister Gilani, while approving the earlier summary for signing the addendum during his visit to China, also desired that the addendum be placed before the Cabinet for approval.

Sources said that the Chairman of Energy Committee, Dr Abdul Hafeez Shaikh, will present the recommendations to resolve inter-circular debt and energy conservation and efficiency. These recommendations include increase in tariff, staged holidays and energy efficiency measures.

Finance Secretary will give presentation on Consumer Price Index (CPI) for the Cabinet to oversee/discuss the trend of prices of essential commodities.

The Cabinet will accord approval of a summary of Ministry of Foreign Affairs titled "Draft biological and toxin weapons convention implementation bill'.

The Cabinet will grant approval to start negotiations and sign Pak-Turkish media cooperation agreement. Approval of Pakistan's membership of the Forum of Federations is also on the cards.

The Cabinet will also consider a proposal of Petroleum Ministry regarding legislation on 'Gas Infrastructure Development Cess Bill 2011', in principle, according to which separate levy will be imposed on consumers for projects like IP and TAPI.

The Cabinet will consider a summary of Water and Power Ministry regarding review of contractual status of six rental power plants (RPPs) and recommendation for their processing.

Approval of Memorandum of Understanding (MoU) for import of electricity from Kyrgyz Republic and Tajikistan CASA-1000 is also on the agenda.Prime Minister Gilani will brief the Cabinet about his recent visit to Balochistan, and will welcome MQM in the Cabinet.