Islamabad:
The federal cabinet on Wednesday gave the green light to Pakistan’s largest economic restructuring scheme aimed at removing the paralyzing circular debt in the electricity sector.
Prime Minister Shehbaz Sharif was chairman of the federal cabinet meeting in the Prime Minister House and approved a number of key decisions ranging from energy sector reforms to diplomatic and institutional recognitions, a Prime Minister’s office’s news message said.
The debt plan, designed to restore financial stability in the energy sector without burdening the national budget, aims to eliminate RS1.275 billion in circular debt over the next six years.
The approved scheme includes refinancing of RS683 billion caused by Power Holding Company and clearing long -term taxes for independent force producers (IPPS). The prime minister called the decision a “historical step towards financial stability and investor confidence in Pakistan’s energy sector.”
“This reflects our commitment to sustainable institutional reforms and reducing tax pressure and paving the way for a more stable and prosperous energy future,” he said during the session.
The cabinet also expanded appreciation to Finance Minister Muhammad Aurangzeb and his financial team to present a public friendly budget for the coming fiscal year and recognized their efforts to stabilize the national economy.
On the diplomatic front, Prime Minister Shehbaz Sharif Chief of Army Staff Field Marshal Syed Asim Munir for his address to the Pakistani Diaspora during his recent American visit.
The Prime Minister praised Fieldmarshal’s regular commitment to defending Pakistan’s borders and interests and called it a strong representation of national determination.
In recognition of exemplary Hajj events this year, the Prime Minister paid tribute to the Minister of Religious Affairs Sardar Yousaf, referring to the well-controlled pilgrimage as a reflection of the government’s obligation to expertise in public service.
In other key decisions, the cabinet approved the appointment of Kamal Udin Tipu as chairman of the Commission for the protection of journalists and media professionals for the recommendation of Human Rights.
The cabinet also granted exemption in accordance with section 21 of the Public Purchasing Regulatory Authority Regulation, 2002, to the National Power Parks Management Company Limited (NPPMCL) for purchasing in connection with the acquisition of Rousch Power Plant.
In addition, the cabinet ratified the decisions made under the Cabinet Committee for regulatory cases held on May 21, 2025.