ISLAMABAD, Jan 14 (Alliance News): The federal cabinet, chaired by Prime Minister Muhammad Shehbaz Sharif on Tuesday, approved revised agreements with 14 Independent Power Producers (IPPs) aimed at reducing electricity costs and saving Rs 1.4 trillion for the national exchequer over their applicable durations.
Under the revised agreements, reductions amounting to Rs 802 billion in profit and costs of the IPPs were approved, along with the deduction of Rs 35 billion in excess profits from previous years.
Ten of the IPPs operate under the 2002 Power Policy, while four were established under the 1994 policy. An agreement with one IPP from the 1994 policy has been canceled.
The move is projected to generate annual savings of Rs 137 billion, benefiting power consumers. Prime Minister Sharif highlighted the achievement, stressing its contribution to reducing circular debt, lowering electricity costs, and achieving substantial national savings.
The cabinet also approved key structural reforms to save costs and improve efficiency. It merged the Ministry of Narcotics Control into the Ministry of Interior Division, reducing annual administrative expenses by Rs 183.25 million.
Similarly, the Aviation Division was merged with the Ministry of Defence, saving Rs 145 million annually. These steps are in line with the government’s austerity measures and aim to streamline operations.
Additionally, the cabinet approved the introduction of Section 45-A in the Public Procurement Rules, 2004, to enable delegation of procurement processes.
It also endorsed the National Commission for Minorities Act 2024 for parliamentary approval and extended Dr. Muhammad Bashir’s employment contract as Technical Member of the Environmental Tribunal, Islamabad, for two years.
