The federal cabinet, under the chairmanship of Prime Minister Shehbaz Sharif, has approved revised agreements with 14 independent power producers (IPPs), which could result in a reduction in electricity prices by up to Rs 11.
According to Express Newsthe council of ministers approved the proposal to review the contracts with the 14 IPPs based on the recommendation of the Electricity Division. As a result of these revised agreements, a reduction of Rs802 billion in profits and costs of these IPPs was agreed.
The statement issued said that an additional Rs 35 billion will be deducted from the additional profits of these IPPs accumulated over the past few years. Ten of these IPPs operate under the 2002 Energy Policy, while four are part of the 1994 Energy Policy.
In addition, the contract of one of the RRIs covered by the 1994 policy was canceled. The revised agreements with these IPPs are expected to result in total savings of Rs 1.4 trillion over the applicable duration of the contracts, with an annual saving of Rs 137 billion, benefiting consumers.
Prime Minister Shehbaz hailed the revised agreements as a significant success, saying 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 Narcotics Control Ministry with the Interior Ministry, as part of the government’s restructuring initiative.
The Anti-Narcotics Division will now function as a branch of the Ministry of Interior, while the Anti-Narcotics Force (ANF) will be an attached department of the ministry.
This merger is expected to save the National Treasury Rs 183.25 million per year in administrative, salaries, office maintenance and other operational costs.
Additionally, the cabinet approved the merger of the Aviation division with the Defense division. This decision follows the principle of budgetary austerity, with civil aviation affairs previously managed by the Ministry of Defense until 2013.
The merger aims to improve airspace management and is expected to save Rs 145 million per year in similar operational expenses.
Other Cabinet approvals
Public procurement rules: The cabinet, based on a recommendation from the Cabinet Division, approved the addition of Rule 45-A to the Public Procurement Rules, 2004. This section allows a procuring agency to delegate any or part of its contracting process to another agency.
National Commission for Minorities: The cabinet also approved the National Commission for Minorities Act, 2024, which will be sent to Parliament for consideration, in line with the recommendation of the Ministry of Human Rights.
Service extension: The cabinet has granted a two-year extension to the contract of Dr Muhammad Bashir as a member of the Islamabad Environmental Technical Tribunal, on the recommendation of the Ministry of Law and Justice.
