Islamabad:
The federal cabinet on Wednesday gave the green light to the largest financial restructuring scheme of Pakistan aimed at eliminating the paralyzing circular debt in the electrical sector.
Prime Minister Shehbaz Sharif presided over the federal cabinet meeting at the Prime Minister’s Chamber and approved a series of key decisions that range from reforms of the energy sector to diplomatic and institutional awards, said a press release from the Prime Minister’s office.
The debt plan, designed to restore financial stability in the energy industry without loading the national budget, aims to eliminate RS1,275 billion in circular debt over the next six years.
The approved scheme includes the refinancing of RS683 billion owed by the portfolio company and the cleaning of independent energy producers (IPP). The prime minister described the decision as a “historical step towards economic stability and the confidence of investors in the Pakistan energy sector.”
“This reflects our commitment to sustainable institutional reforms and reducing fiscal pressure, racing the way for a more stable and prosperous energy future,” he said during the session.
The cabinet also expanded the appreciation of the Minister of Finance, Muhammad Aurengzeb, and his economic team for presenting a friendly budget for the public for the next fiscal year, recognizing his efforts to stabilize the national economy.
In the diplomatic front, Prime Minister Shehbaz Sharif praised the head of the Syed Army personnel, also Munir for his speech to the Pakistani diaspora during his recent visit in the United States.
The prime minister chose the firm commitment of the Marshal of Campo to defend the borders and interests of Pakistan, qualifying him as a powerful representation of the national resolution.
In recognition of the exemplary arrangements of Hajj this year, the prime minister paid tribute to the Minister of Religious Affairs Sardar Yousaf, citing the well -managed pilgrimage as a reflection of the government’s commitment to excellence in the public service.
In other key decisions, the Cabinet approved the appointment of Kamal Uddin Tipu as president of the Commission for the Protection of Journalists and Media professionals on the recommendation of the Ministry of Human Rights.
The cabinet also granted exemption under section 21 of the Ordinance of the Regulatory Authority of Public Procuros, 2002, to the National Power Parks Management Company Limited (NPPMCL) for the acquisition related to the acquisition of the Rousch energy plant.
In addition, the cabinet ratified the decisions taken during the meeting of the Cabinet Legislative Case Committee held on May 21, 2025.
