ISLAMABAD:
The federal cabinet on Tuesday gave the green light to review agreements with 14 independent power producers (IPPs) 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. Addressing the meeting, Prime Minister Shehbaz welcomed the process of renegotiation of power purchase agreements with IPPs, saying it would result in significant savings to the national exchequer.
The cabinet approved the recommendation of the Power Division to revise agreements – negotiated settlement – with 14 IPPs aimed at reducing power costs and saving Rs 1.4 trillion for the national exchequer.
After discussion with the 14 IPPs, as part of the negotiated settlement agreements, the cabinet approved the recommendation of reduction of Rs802 billion in terms of profit and cost of these IPPs. An amount of Rs35 billion of excess profits from previous years would also be deducted from these PPIs.
The cabinet was informed that out of these 14 IPPs, 10 were operating under the 2002 energy policy, while four others were established under the 1994 policy. Furthermore, an agreement with an IPP of the energy contract 1994 had been canceled.
The meeting was informed that these revised agreements are expected to save the government Rs 1.4 trillion over their applicable duration, with annual savings of Rs 137 billion, which would benefit electricity consumers.
“The revised agreements with the IPPs are a great success. Not only will the circular debt cease, but the price of electricity will also be reduced,” the Prime Minister said during the meeting. He appreciated the performance of Energy Minister Awais Leghari and others involved in the process.
The cabinet also approved the reorganization of the Narcotics Control Department on the recommendation of the committee formed by the federal government regarding government restructuring. From now on, the Ministry of Narcotics Control would function as a department under the Ministry of Interior.
The cabinet was informed that this reorganization of the Narcotics Control Ministry would save the National Treasury Rs 183,250 million annually in terms of administrative matters, salaries, office maintenance and other operational expenses.
On another recommendation from the right-sizing committee, the cabinet approved the reorganization of the Aviation division within the Defense division. This arrangement would save the National Treasury Rs 145 million annually, besides improving airspace management.
Among other items on the agenda, the cabinet, on the recommendation of the Cabinet Division, approved the insertion of a new Rule 45-A in the Public Procurement Regulatory Authority (PPRA) Rules, aimed at allowing a contracting agency to delegate the process to another contracting entity. agency.
The cabinet approved the National Commission for Minorities Act, 2024 for tabling and adoption by Parliament on the recommendation of the Ministry of Human Rights. It also approved the two-year extension of the mandate of Dr. Muhammad Bashir, member of the Environmental Technical Tribunal.
Earlier, in his opening address, Prime Minister Shehbaz called for proactive measures to address the 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. He noted that good discussions were held regarding girls’ education. He pointed out that the government declared a state of emergency in education in the country a few months ago.
The Prime Minister termed the resumption of Pakistan International Airlines (PIA) flights to Europe as a major achievement. He expressed confidence that flights to Britain would also resume soon, claiming to facilitate Pakistani travelers.
Shehbaz informed the cabinet about the opening of a new border crossing point 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 crossing point.
The Prime Minister expressed satisfaction over the normalization of the situation in Kurram district of Khyber Pakhtunkhwa (KP). He also praised the security forces for their efforts in eradicating terrorism from the country.
IT exports
Later in the day, Prime Minister Shehbaz chaired a meeting regarding the information technology (IT) sector. He asked the relevant authorities to further simplify the current priority rules in order to promote broadband services via optical fiber in the country.
Shehbaz expressed satisfaction over the steps taken to increase IT exports up to $25 billion in the next five years. He asked the authorities to improve IT infrastructure, provide quality IT training to young people and facilitate the issuance of visas for potential investors to achieve this goal.
The meeting was informed that consultation on a national artificial intelligence (AI) policy was ongoing and the final report would be presented for approval next month. The Prime Minister called for formulation of an international marketing strategy for Pakistan’s IT sector.
Youth program
Shehbaz chaired another meeting on youth agenda during which he spearheaded the formulation of a strategy aligned with the market demands of friendly countries to provide jobs to youth abroad, besides calling for action against fake, unlicensed companies offering jobs abroad.
Shehbaz said equipping the youth with professional skills was key to increasing employment 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 its role in promoting technical and vocational skills. The future of Pakistan is linked to the development of the IT sector,” he said.
During the meeting, the Prime Minister was informed about the creation of a platform called ‘Prime Minister Digital Youth Hub’ to provide information on jobs and other services to young people. He ordered that the platform be introduced in multiple languages.
(WITH RADIO PAKISTAN INPUT)
