The federal cabinet, chaired by Prime Minister Shehbaz Sharif, approved revised agreements with 14 Independent Power Producers (IPPs) during its Tuesday meeting, paving the way for a potential reduction in electricity prices by up to Rs11.
According to a report by Pak Observer, the Power Division’s recommendation to renegotiate contracts with the IPPs was endorsed, leading to an agreed reduction of Rs802 billion in profits and costs for these producers. An additional Rs35 billion will be deducted from excess profits accrued by the IPPs in previous years.
Among the IPPs, 10 operate under the 2002 power policy, while four fall under the 1994 policy. One IPP from the 1994 policy had its contract canceled. These revised agreements are projected to yield total savings of Rs1.4 trillion over the contracts’ terms, with annual savings of Rs137 billion. PM Shehbaz lauded the development as a major success, emphasizing its role in reducing circular debt, lowering electricity costs, and benefiting consumers.
The cabinet approved merging the Ministry of Narcotics Control with the Ministry of Interior as part of the government’s right-sizing strategy. The Anti-Narcotics Division will now operate as a wing of the Interior Ministry, and the Anti-Narcotics Force will be an attached department. This merger is expected to save Rs183.25 million annually through reduced administrative costs.
Similarly, the Aviation Division will be merged with the Ministry of Defense. This decision reverts Civil Aviation Affairs to its pre-2013 arrangement under the Defense Ministry and is expected to save Rs145 million annually.
The cabinet approved introducing Section 45-A to the Public Procurement Rules, 2004, enabling procuring agencies to delegate procurement tasks to other agencies. The National Commission for Minorities Act 2024 was approved for submission to Parliament, following recommendations from the Ministry of Human Rights.
Additionally, Dr. Muhammad Bashir’s contract as a member of the Technical Environment Tribunal, Islamabad, was extended for two years. Summaries from the Rightsizing Committee to streamline federal institutions were also approved, aligning with the government’s fiscal austerity measures.
Prime Minister Shehbaz Sharif praised the efforts of the security forces, led by the Army Chief, in their operations against terrorists. He highlighted the successful peace restoration in Kurram and expressed confidence in permanently eliminating the terror network Fitna Al-Khawarij.
In education, the Prime Minister urged the Education Minister to collaborate closely with provinces to address challenges and advance educational initiatives. He reaffirmed the declaration of an emergency in the education sector and emphasized its importance as a national priority.
PM Shehbaz celebrated the resumption of Pakistan International Airlines (PIA) flights to Europe, calling it a significant milestone. He expressed optimism about the return of PIA flights to the UK, which will greatly facilitate Pakistani travelers.
