Islamabad: The Federal Cabinet has approved revised agreements with fourteen Independent Power Producers (IPPs) in a move projected to save the national exchequer 1.4 trillion rupees. The Cabinet, led by Prime Minister Shehbaz Sharif, also sanctioned the merger of government divisions to streamline operations.

According to a statement by Ministry of Information and Broadcasting, the Cabinet meeting aimed to reduce the profit and costs associated with the IPPs by 802 billion rupees. Additionally, the government will deduct 35 billion rupees from the additional profits these power producers have accrued over past years.

Prime Minister Sharif emphasized that these revised agreements are expected to eliminate circular debt and decrease electricity prices, aligning with the government’s broader economic reform agenda. The revisions highlight the administration’s efforts to manage fiscal policies effectively and cut down on unnecessary expenditures.

In addition to changes in power agreements, the Cabinet approved the merger of the Anti-Narcotics Division into the Ministry of Interior and the Aviation Division into the Ministry of Defense. This restructuring is seen as part of a broader strategy to enhance governmental efficiency and effectiveness.