ISLAMABAD: The federal cabinet which is scheduled to meet on Tuesday (tomorrow) with Prime Minister, Imran Khan, in the chair, will consider IPPs report cleared by the Cabinet Committee on Energy (CCoE) last week.
According to sources, the government will save Rs 856 billion in the next ten years on account of negotiation with the IPPs.
According to sources, the financial impact of agreements with IPPs, government owned IPPs and closure of government owned old power plants would be around Rs 1000 billion over a period of seven to 10 years.
However, the agreements between the government and IPPs will materialize once the former clears IPPs receivables which are around Rs 400 billion.
IPPs signed MoUs are applicable for six months with the government subject to acceptable payment instrument of IPPs receivables.
"A lot of discussion has already been held on payment mechanism of IPPs receivables. One possibility is issuance of zero coupon bonds as commercial banks are agreed to this scheme," said one of the representatives of IPPs.
Minister of Planning, Development and Special Initiatives, Asad Umar who is also the chairman of CCoE will give a presentation to the Cabinet on this issue. The Cabinet will also ratify the decisions of CCoE taken on September 24, 2020. Finance Ministry, will give presentation on debt/ debt servicing to the federal cabinet.
The cabinet will also discuss political situation of the country whereas cabinet members will express its appreciation for the Prime Minister’s speech at the UN.
Other items of cabinet agenda will be as follows ;(i) designation of Virgin Atlantic Airways Limited;(ii) one time permission for other pre-shipment agencies to carry out pre-shipment inspection for import of wheat by TCP;(iii) nomination of non-official members in Islamabad Wild Life Management Board (WMB), Ministry of Climate Change ;(iv) placement of new laws in FIA schedule of offences;(v) rationalization of visa regime-modalities for visa regime in respect of Afghanistan;(v) appointment of federal government analyst for biological drugs under section-16 of the Drug Act, 1976;(vi) approval of constitution of the Medical and Dental Council under the Pakistan Medical Commission Act, 2020;(vii) approval of the restructuring and revival plan of Pakistan Railways;(viii) appointment of Chairman, Pakistan Council of Scientific and Industrial Research (PCSIR), Islamabad under MP-1 scale ;(ix) inquiry into sabotaging the installation of telemetry system;(x) appointment made without approval of federal government -regularization of the appointment of Chief Executive Officer (CEO) of Neeum Jhelum Hydropower Company (NJHPC);(xi) appointment of administrator, Islamabad Club and ;(xii) ratification of decisions of ECC taken on September 23, 2020.
Copyright Business Recorder, 2020