Pakistan and the US are negotiating new terms of engagement for the reciprocal provision of logistic support, supplies and services for the war on terror that will replace an MoU signed during during former military ruler Pervez Musharraf’s regime, a media report today said.

The new terms of engagement will be under the US-Pakistan Acquisition and Cross Services Agreement (ACSA), The News daily quoted a draft of the agreement as saying.

The ACSA will supersede an earlier MoU signed on February 9, 2002 during Musharraf’s regime.

Prime Minister Yusuf Raza Gilani recently said that his government was carrying out a comprehensive review of strategies related to key foreign policy issues, including the US-led war on terror and the Kashmir dispute.

An unnamed member of the Federal Board of Revenue confirmed to the daily the new draft agreement.

“The government of Pakistan is reviewing its earlier agreement of Feb 2002 before its completion”, the official said.

The new agreement has nine articles, including purpose, applicability, definitions, terms and conditions, waived and excluded costs, security of information, revision of information and entry into force and termination, according to the draft agreement.

The draft states, “Upon entry into force, the new MoU applies to all new orders for logistics support, supplies and services”.

“However, any financial obligations, transactions, orders or requests for logistics support, supplies and services prior to the effective date of new agreement under the authority of the 2002 shall remain binding”.

The purpose of the new draft agreement is to establish basic terms, conditions and procedures to facilitate reciprocal provision of logistic support, supplies and services to be used for combined exercises, training, deployments, port calls, operations or other cooperative efforts and unforeseen circumstances or exigencies, the document said.

The proposed draft agreement further says the provision of services apply to military forces of one party to other in return for either cash or reciprocal provision of same services to the military forces of other party.

Under the new agreement, both Pakistan and the US will appoint a “Point of Contact” an officer or agency that is authorised to sign an order requesting or agreeing to supply logistic support, supplies and services.

Reimbursement for logistic support, supplies and services will be made either through payment by cash or by replacement-in-kind or an equal-value exchange.

Meanwhile, The Express Tribune reported that the Pakistan government is mulling a proposal to impose a permanent ban on export of locally produced petroleum products, except jet fuel, to NATO and allied forces in Afghanistan.

Export of jet fuel will be allowed if NATO agrees to pay all applicable duties to Pakistan.

Pakistan has been exporting petroleum products to NATO forces, exempted of all duties, since 2002.

The supplies were made through the US Defence Energy Supply Company.

The Petroleum Ministry has moved a proposal to the Economic Coordination Committee of the Cabinet, scheduled to meet tomorrow, seeking a permanent ban on export of locally-produced fuels, including petrol and diesel.

The ministry has proposed that export of other locally produced products should be allowed if NATO forces pay complete duties applicable in Pakistan.

Petroleum Secretary Ijaz Chaudhry confirmed that the proposal had been moved because of a shortage of petroleum products in the country.