The federal cabinet, headed by Prime Minister Shehbaz Sharif, has approved revised agreements with 14 independent power producers, a move that is expected to bring down electricity prices by Rs 10-11 per unit.
The renegotiated contracts are set to save 802 billion rupees by reducing profits and costs of independent power projects, while deducting an additional 35 billion rupees from excess profits earned in previous years.
The amended agreements cover 10 IPPs operating under the 2002 Energy Policy and four under the 1994 Policy. One IPP from the 1994 Policy has had its contract terminated.
The new arrangements are expected to achieve total savings of Rp1.4 trillion over the contract period, which equates to Rp137 billion in annual savings for consumers.
Prime Minister Shehbaz Sharif hailed the agreements as a “significant achievement” that will not only reduce the national circular debt but also provide much-needed relief to electricity consumers.
In addition to the independent energy project agreements, the Council of Ministers approved the merger of the Ministry of Narcotics Control with the Ministry of Interior, with the aim of simplifying operations and reducing administrative costs. The Anti-Narcotics Department will now operate as a wing within the Ministry of Interior, while the Anti-Narcotics Force will become an attached department. This restructuring is expected to save Rs 183.25 million annually.
The Cabinet also gave the green light to merge the aviation division with the defense division, in line with fiscal austerity measures. Previously managed under the Ministry of Defense until 2013, the merger aims to strengthen airspace management and is expected to save Rs 145 million annually.
Furthermore, the Cabinet approved the amendment to the Public Procurement Rules, 2004, introducing Section 45-A, which allows procuring agencies to delegate their procurement operations to other agencies.
The Cabinet also approved the National Authority for Minorities Law of 2024 to be presented to Parliament based on the recommendation of the Ministry of Human Rights.
In addition, the contract of Dr. Muhammad Bashir as a member of the Islamabad Environmental Technical Tribunal has been extended for two years on the recommendation of the Ministry of Law and Justice.