ISLAMABAD:
The federal cabinet on Tuesday gave go-ahead to revise the agreements with 14 Independent Power Producers (IPPs), and approved merger of the Aviation Division with the defence ministry and the narcotics control ministry with the interior ministry, as part of the government’s austerity drive.
The cabinet met here with Prime Minister Shehbaz Sharif in the chair. Addressing the meeting, Prime Minister Shehbaz hailed the process of renegotiations on the power purchase agreements with IPPs, saying that it would result in big saving to the national exchequer.
The cabinet approved the Power Division’s recommendation to revise the agreementsnegotiated settlementwith 14 IPPs aimed at reducing electricity costs and saving of Rs1.4 trillion for the national exchequer.
After discussion with the 14 IPPs, under the negotiated settlement agreements, the cabinet approved the recommendation for reduction of Rs802 billion in terms of profit and cost of those IPPs. An amount of Rs35 billion in excess profits from previous years would also be deducted from these IPPs.
The cabinet was informed that of these 14 IPPs, 10 operated under the 2002 power policy, while four others were established under the 1994 policy. Besides, an agreement with one IPP from the 1994 policy had been cancelled.
The meeting was informed that these revised agreements were projected to save the government Rs1.4 trillion over their applicable duration, with annual savings of Rs137 billion, that would benefit power consumers.
“The revised agreements with IPPs are a great success. Not only the circular debt will end but also the price of electricity will be reduced,” the prime minister told the meeting. He appreciated the performance of the Power Minister Awais Leghari, and others involved in the process.
The cabinet also approved the reorganisation of the narcotics control ministry on the recommendation of the committee formed by the federal government regarding rightsizing of the government. Now, the narcotics control ministry would function as an attached department of the interior ministry.
The cabinet was informed that this reorganisation of the narcotics control ministry would save the national exchequer Rs183.250 million annually in terms of administrative matters, salaries, office maintenance and other operational expenses.
On another recommendation of the rightsizing committee, the cabinet approved the reorganisation of the Aviation Division in the Defence Division. This arrangement would save the national exchequer Rs145 million annually, besides it would improve management of the airspace.
Among other agenda items, the cabinet, on the recommendation of the Cabinet Division, approved the insertion of a new section 45-A in the Public Procurement Regulatory Authority (PPRA) rules, aimed at allowing a procuring agency to delegate the process to another procuring agency.
The cabinet approved the National Commission for Minorities Act 2024 for its tabling and passage from parliament on the recommendation of the human rights ministry. It also approved extension in the tenure of Dr Muhammad Bashir, member of the Technical Environment Tribunal, for two years.
Earlier, in his opening remarks, Prime Minister Shehbaz called for proactive steps to address the challenges in the education sector and instructed the education minister to coordinate with the provinces in this regard.
The prime minister briefed the cabinet on the International Conference on Girls’ Education recently held in Islamabad. He noted that good discussions took place regarding the education of girls. He pointed out that the government had declared education emergency in the country a few months back.
The prime minister described the resumption of Pakistan International Airlines (PIA) flights to Europe as a major achievement. He expressed the confidence that the flights to Britain would also resume soon saying to facilitate the Pakistani travellers.
Shehbaz informed the cabinet about the opening of a new border crossing point between Pakistan and Iran in Panjgur. “This will promote legal trade and help check smuggling,” Shehbaz said. He thanked Iranian cooperation for the opening of the new crossing point.
The prime minister expressed satisfaction with the normalisation of situation in Kurram district of Khyber Pakhtunkhwa (K-P). He also paid tribute to the security forces for their efforts to eradicate terrorism from the country.
IT exports
Later in the day, Prime Minister Shehbaz chaired a meeting regarding the information technology (IT) sector. He directed the relevant authorities to further simplify the current Right of Way rules to promote broadband services through fibre optics in the country.
Shehbaz expressed his satisfaction with the steps being taken to boost IT exports by up to $25 billion in the next five years. He directed the authorities to improve the IT infrastructure, provide quality IT training to the youth and facilitation in visa issuance for potential investors to achieve this target.
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 the formulation of a strategy for the marketing of Pakistan’s IT sector internationally.
Youth Programme
Shehbaz chaired another meeting on the Youth Programme in which he directed for the formulation of a strategy aligned with the market demands of friendly countries to provide employment to youth abroad, besides, desiring action against fake and unlicensed companies offering jobs overseas.
Shehbaz said that equipping the youth with professional skills was essential to increase job 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 Skill Development Programme should play their role in promoting technical and professional skills. Pakistan’s future is linked to the development of the IT sector,” he said.
During the meeting, the prime minister was informed about the establishment of a platform named “Prime Minister Digital Youth Hub” to provide information regarding jobs and other services to the youth. He directed that the platform should be introduced in multiple languages.
(WITH INPUT FROM RADIO PAKISTAN)
