ISLAMABAD: The Central Executive Committee of the Pakistan People's Party authorised Prime Minister Yousuf Raza Gilani on Friday to dissolve the federal cabinet and form a smaller one in consultation with coalition partners.

“A meeting of the CEC, presided over by President and PPP Co-Chairman Asif Ali Zardari, has authorised the prime minister to dissolve the cabinet and reappoint a smaller cabinet with fewer ministers enjoying reputation of integrity, competence and efficiency,” presidential spokesman Farhatullah Babar said.

The prime minister began the consultation process soon after the PPP co-chairman received resignations from all ministers belonging to his party.

Political observers are of the opinion that although the prime minister has to select new faces or drop old ones, the main say in the choice would be that of President Zardari as he the party chief.

The announcement of the CEC decision was first made by Farhatullah Babar from the presidency and then at a press conference, joint addressed by PPP Secretary General Jehangir Badar and Information Secretary Fauzia Wahab at the PPP Central Secretariat.

“The decision (regarding dissolution of the cabinet) was taken after the co-chairman invited the committee members' comments on his intention to have a 'mean, lean and above the board cabinet',” Mr Babar said.

He did not mention the exact date for dissolution of the cabinet. “All the ministers, advisers, special assistants and those holding rank of ministers cease to hold offices on a date to be soon decided by the prime minister in consultation with coalition partners and under the guidance and advice of the party's co-chairman, Asif Zardari.”

Sources at the Prime Minister's House said the new cabinet would be formed in phases. Ten to 15 ministers would be appointed in the first phase while the rest would be inducted later to keep an option open for the disgruntled coalition partners to rejoin the government.

According to some private TV channels, the prime minister called Awami National Party chief Asfandyar Wali Khan to seek his consent on the decision regarding dissolution of the cabinet. The ANP chief is reported to have agreed with the decision, but said he would reply after consultation with his party.

Mr Gilani also called Muttahida Qaumi Movement chief Altaf Hussain, who hailed the decision of 'rightsizing' the federal cabinet.

(According to APP, the prime minister also called PML-N chief Nawaz Sharif, PML-F leader Pir Pagara, JUI-F Amir Maulana Fazlur Rehman and Munir Khan Orakzai, the leader of Fata parliamentarians.

President Zardari telephoned Mian Nawaz Sharif on Friday night. According to Farhatullah Babar, the two leaders discussed the current political situation.)

Political observes are of the opinion that the positive response from the MQM chief indicates that his ministers who quit the federal cabinet over the issue of increase in prices of petroleum products and inflation, will rejoin the government.

But the chances of return of another disgruntled coalition partner — Jamiat Ulema-i-Islam-F — are bleak. Before quitting the coalition government, it held three federal ministries — housing, religious affairs and tourism.

Under the 18th Amendment, 18 federal ministries are to be devolved to the provinces. Five ministries — population welfare, zakat and ushr, local bodies and rural development, special initiatives and youth affairs — have already been given to the provinces. Five more — culture, education, livestock and dairy development, social welfare and tourism would be handed over to the provinces by the end of this month.

In the third phase, eight ministries will become provincial subjects next month. They are: health, labour and manpower, women development, food and agriculture, statistics division, environment, sports and minority affairs.

Sources in the People's Party said that except for one or two all other ministers of state would be sacked. Jahangir Badar said that all the ministers had voluntarily tendered their resignations. “PPP is like an institution and all decisions are made through consensus.”

He said the MQM would be offered ministries in the new cabinet, whose composition would be informed, in part, by the next general election. “The PPP will continue its reconciliatory policy to strengthen democracy.”

Mr Badar said that changes in the cabinet were also made during the tenure of former prime minister Zulfikar Ali Bhutto. “Changes in the present cabinet are being made to improve the performance of ministers.”

The CEC also discussed the overall political situation and decided to work for controlling inflation. “It was decided to write letters to the chief ministers and secretaries of the four provinces, Azad Kashmir and Gilgit-Baltistan and to administrations at the district and tehsil levels,” Mr Badar said.

He said that PPP Chairman Bilawal Bhutto Zardari would preside over the next CEC meeting and get a final briefing on the progress in investigations into the assassination of Benazir Bhutto.

In reply to a question about the lifting of a ban on student unions, Mr Badar said that a committee had already been constituted for the purpose. It would be consulted before taking any decision.

The CEC endorsed the initiatives taken by the prime minister in consultation with other political parties to curb terrorism and control price hike.