Federal cabinet approves proposal to revise agreements with 14 IPPs: PMO

The federal cabinet approved on Tuesday a proposal of the Power Division to revise agreements (negotiated settlement agreements) with 14 independent power producers (IPPs), a statement from the Prime Minister’s Office (PMO) said.

The revised agreements will include a reduction of Rs802 billion in profits and costs for the IPPs, with Rs35 billion being deducted from their excessive profits over previous years, it added.

“Out of these, 10 IPPs were established under the 2002 policy, while 4 were set up under the 1994 policy. Additionally, the agreement with one IPP under the 1994 policy has been canceled,” the statement read.

Govt saved Rs1.1 trillion through talks with IPPs: Awais Leghari

Negotiations with the IPPs in the country so far are expected to save the government Rs1.4 trillion, with an annual saving of Rs137 billion, benefiting power consumers.

Merger of Ministry of Narcotics Control with Ministry of Interior

Meanwhile, the cabinet also approved the merger of the Ministry of Narcotics Control with the Ministry of Interior on recommendation of the committee formed for rightsizing.

Following the merger, Narcotics Control will function as a wing of the Ministry of Interior, while the Anti-Narcotics Force (ANF) will operate as an attached department of the Ministry of Interior.

Rightsizing measures: govt to abolish 150,000 vacant posts, says Aurangzeb

The merger is expected to save the national exchequer Rs183.250 million annually in administrative costs, salaries, office maintenance, and other operational expenses.

Merger of Aviation Division with Defense Division

In another move on recommendation of the rightsizing committee, the cabinet approved the merger of the Aviation Division with the Defense Division.

The merger is expected to save the national exchequer Rs145 million annually in administrative costs, salaries, office maintenance, and other operational expenses.

The cabinet was informed that until 2013, civil aviation matters were managed under the Ministry of Defense.

“Therefore, in light of the government’s austerity policy, it has been decided to re-merge the Aviation Division with the Ministry of Defense,” the PMO statement read. “This move is anticipated to enhance airspace management”.