ISLAMABAD:
On Tuesday, the federal cabinet gave the green light to the review of agreements with 14 independent power producers (IPP) and approved the merger of the Aviation Division with the Ministry of Defense and the Ministry of Narcotics Control with the Ministry of the Interior , as part of the government’s austerity campaign. .
The cabinet met here under the chairmanship of Prime Minister Shehbaz Sharif. Speaking at the meeting, Chief Minister Shehbaz praised the process of renegotiating power purchase agreements with the IPs, stating that it would bring huge savings to the national exchequer.
The Cabinet approved the Power Division’s recommendation to review agreements (negotiated agreement) with 14 IPPs aimed at reducing electricity costs and saving Rs 1.4 trillion for the national exchequer.
After discussion with the 14 PPIs, under the negotiated settlement agreements, the cabinet approved the recommendation to reduce Rs 802 billion in terms of profits and costs of those PPIs. An amount of Rs 35,000 crore in excess profits from previous years would also be deducted from these PPIs.
The cabinet was informed that of these 14 IPPs, 10 operated under the 2002 energy policy, while another four were established under the 1994 policy. Additionally, an agreement with one IPP from the 1994 policy was cancelled.
The meeting was informed that these revised agreements were projected to save the government Rp 1.4 trillion over their applicable duration, with annual savings of Rp 137 billion, which would benefit energy consumers.
“The revised agreements with the IPPs are a great success. Not only will the circular debt be ended but the price of electricity will also be reduced,” the prime minister said at the meeting. He appreciated the performance of the Minister of Energy, Awais Leghari, and others involved in the process.
The cabinet also approved the reorganization of the Ministry of Narcotics Control on the recommendation of the committee formed by the federal government on adjusting the size of the government. Now, the Ministry of Narcotics Control would function as an attached department of the Ministry of Home Affairs.
The cabinet was informed that this reorganization of the Ministry of Narcotics Control would save the national exchequer Rs 183.25 billion annually in terms of administrative matters, salaries, office maintenance and other operational expenses.
On another recommendation of the size adjustment committee, the cabinet approved the reorganization of the Aviation Division into the Defense Division. This agreement would save the national exchequer Rs 145 crore annually, besides improving airspace management.
Among other agenda items, the cabinet, on the recommendation of the Cabinet Division, approved the insertion of a new section 45-A in the Public Procurement Regulatory Authority (PPRA) rules, intended to allow a contracting agency to delegate the process to another contracting agency. agency.
The cabinet approved the National Commission for Minorities Act, 2024 for presentation and approval in Parliament on the recommendation of the Ministry of Human Rights. It also approved the extension of the term of Dr. Muhammad Bashir, member of the Environmental Technical Court, for two years.
Earlier, in his opening remarks, Prime Minister Shehbaz called for proactive measures to address challenges in the education sector and directed the Education Minister to coordinate with the provinces in this regard.
The Prime Minister briefed the cabinet about the International Conference on Girls’ Education held recently in Islamabad. She noted that there were good discussions about girls’ education. He pointed out that a few months ago the government declared an educational emergency in the country.
The Prime Minister described the resumption of Pakistan International Airlines (PIA) flights to Europe as a major achievement. He expressed confidence that flights to Britain will also resume soon, to facilitate Pakistani travellers.
Shehbaz briefed the cabinet about the opening of a new border crossing between Pakistan and Iran at Panjgur. “This will promote legal trade and help control smuggling,” Shehbaz said. He thanked Iranian cooperation for the opening of the new border point.
The Prime Minister expressed satisfaction over the normalization of the situation in Kurram district of Khyber Pakhtunkhwa (KP). He also paid tribute to the security forces for their efforts in eradicating terrorism from the country.
IT exports
Later in the day, Prime Minister Shehbaz chaired a meeting on the information technology (IT) sector. He directed the relevant authorities to further simplify the current Right of Way regulations to promote broadband services through fiber optics in the country.
Shehbaz expressed satisfaction with the measures being taken to boost IT exports by up to $25 billion in the next five years. He directed the authorities to improve IT infrastructure, provide quality IT training to the youth and facilitate the issuance of visas for potential investors to achieve this goal.
The meeting was informed that consultations were underway on a national artificial intelligence (AI) policy and that the final report would be presented for approval next month. The prime minister called for formulation of a strategy for international marketing of Pakistan’s IT sector.
Youth Program
Shehbaz chaired another meeting on the Youth Program in which he directed the formulation of a strategy aligned with the market demands of friendly countries to provide employment to youth abroad, besides seeking action against fake and unlicensed companies offering jobs abroad.
Shehbaz said equipping youth with vocational skills was essential to increase job opportunities and assured that the government was actively pursuing a policy to reduce unemployment by promoting the private sector.
“NAVTTC [National Vocational & Technical Training Commission] and the Prime Minister’s Youth Skills Development Program should play their role in promoting technical and vocational skills. “Pakistan’s future is linked to the development of the IT sector,” he said.
During the meeting, the Prime Minister was briefed on the establishment of a platform called “Prime Minister’s Digital Youth Centre” to provide information on jobs and other services to the youth. He indicated that the platform should be introduced in multiple languages.
(WITH CONTRIBUTIONS FROM RADIO PAKISTAN)
