The federal cabinet, under the chairmanship of Prime Minister Shehbaz Sharif, approved revised agreements with 14 independent power producers (IPPs), which could lead to a reduction in electricity prices by up to Rs 11.
According Express Newsthe cabinet meeting approved the proposal to review the contracts with the 14 IPPs based on the recommendation of the Energy Division. As a result of these revised agreements, a reduction of Rs 802 billion in profits and costs for these IPPs was agreed.
The statement issued indicates that an additional Rs 35 billion will be deducted from the additional profits of these IPPs accumulated in the last few years. Ten of these IPPs operate under the 2002 electricity policy, while four are part of the 1994 electricity policy.
In addition, the contract of one of the PPIs was canceled under the 1994 policy. The revised agreements with these IPPs are expected to generate a total saving of Rs 1.4 trillion over the applicable term of the contracts, with savings 137 billion rupees annually, which will benefit consumers.
Prime Minister Shehbaz hailed the revised agreements as a significant success and stated that they would not only save the national exchequer but also help eliminate circular debt and reduce electricity prices.
The cabinet also approved the merger of the Ministry of Narcotics Control with the Ministry of Interior, as part of the government’s right-sizing initiative.
The Anti-Narcotics Division will now function as a wing within the Ministry of Home Affairs, while the Anti-Narcotics Force (ANF) will be an attached department of the Ministry.
This merger is expected to save the national exchequer Rs 183.25 crore annually in administrative matters, salaries, office maintenance and other operational costs.
Furthermore, the cabinet approved the merger of the Aviation Division with the Defense Division. This decision follows the principle of fiscal austerity, since Civil Aviation Affairs previously depended on the Ministry of Defense until 2013.
The merger aims to improve airspace management and is expected to save Rs 145 crore annually in similar operating expenses.
Other cabinet approvals
Public procurement rules: The Cabinet, based on a recommendation of the Cabinet Division, approved the addition of Section 45-A to the Public Procurement Rules, 2004. This section allows a procuring agency to delegate all or part of its procurement process to another agency.
National Commission for Minorities: The cabinet also approved the National Commission for Minorities Bill, 2024, which will be sent to Parliament for consideration, as per the recommendation of the Ministry of Human Rights.
Expansion of service: The cabinet granted a two-year extension to Dr. Muhammad Bashir’s contract as a member of the Islamabad Environmental Technical Tribunal, on the recommendation of the Ministry of Law and Justice.
