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Cabinet approves 14 revised IPP agreements

Cabinet Approves 14 Revised Ipp Agreements
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PM says Army to eliminate Fitna al-Khwarij soon; Cabinet approves National Minority Commission

 

The federal cabinet meeting, held under the chairmanship of Prime Minister Shehbaz Sharif, on Tuesday approved revised agreements with 14 Independent Power Producers, which could lead to a reduction in electricity prices by up to Rs11.

The cabinet meeting approved the proposal to review the contracts with the 14 IPPs based on the recommendation of the Power Division. As a result of these revised agreements, a reduction of Rs802 billion in profits and costs for these IPPs was agreed upon.

The statement indicates that an additional Rs35 billion will be deducted from the extra profits of these IPPs accrued over the past years. Ten of these IPPs are operating under the 2002 power policy, while four are part of the 1994 power policy.

Furthermore, one of the IPPs under the 1994 policy had its contract cancelled. The revised agreements with these IPPs are expected to result in total savings of Rs1.4 trillion over the applicable term of the contracts, with an annual saving of Rs137 billion, benefiting consumers.

PM Shehbaz hailed the revised agreements as a significant success, stating that they would not only save the national treasury 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 operate as a wing within the Ministry of Interior, while the Anti-Narcotics Force will be an attached department of the Ministry.

This merger is expected to save the national exchequer Rs183.25 million annually in administrative matters, 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 fiscal austerity, as Civil Aviation Affairs were previously managed under the Ministry of Defense until 2013.

The merger aims to improve airspace management and is projected to save Rs145 million annually in similar operational expenses.

The cabinet, based on a recommendation from 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.

The cabinet also approved the National Commission for Minorities Act 2024, to be sent to Parliament for consideration, as per the recommendation of the Ministry of Human Rights.

The cabinet granted an extension of two years to Dr Muhammad Bashir’s contract as Member of the Technical Environment Tribunal, Islamabad, on the recommendation of the Ministry of Law and Justice.

Recommendations from the Rightsizing Committee on federal institutions were also presented. Summaries were discussed to place the Aviation Division under the Ministry of Defence and merge the Narcotics Division with the Ministry of Interior. The cabinet endorsed decisions taken by the previous Economic Coordination Committee meeting.

Addressing the meeting, Prime Minister Shehbaz Sharif lauded security forces under the leadership of the Army Chief for their operations against terrorists across the country and expressed the confidence that the terror network, Fitna Al-Khawarij, will soon be eliminated permanently.

The Prime Minister said relentless operations against the terror group are ongoing, and peace has been restored in Kurram following a successful peace agreement. Prime Minister Shehbaz Sharif called for proactive steps to address the challenges in the education sector.

He asked the Minister for Education to closely coordinate with the provinces for promotion of education, emphasizing this will be a major national service.

Shahbaz Sharif also mentioned that an emergency was declared in the education sector a few months ago. The prime minister described the resumption of PIA flights to Europe as a major achievement. He expressed confidence that flights to Britain would also resume, saying this would facilitate Pakistani travellers.

Unfortunately, a few years ago, the then Minister of Aviation from the previous government made a speech in Parliament that contributed to the economic damage of Pakistan, resulting in adverse effects on the country and its travellers.

The Prime Minister also highlighted that after many years, all restrictions are being lifted, and flights to the UK are expected soon.

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