On Wednesday, the federal cabinet greenlit the country’s largest-ever financial scheme, designed to bring stability to the power sector and resolve Rs1,275 billion in circular debt. Chaired by Prime Minister Shehbaz Sharif at the Prime Minister’s House, the federal cabinet meeting saw the approval of several key decisions, ranging from energy sector reforms to diplomatic and institutional recognitions, according to a news release from the Prime Minister’s Office.
The debt plan, which aims to restore financial stability in the energy industry without burdening the national budget, is set to eliminate Rs1,275 billion in circular debt over the next six years. The approved scheme includes the refinancing of Rs683 billion owed by the Power Holding Company and the clearance of long-standing dues to Independent Power Producers (IPPs).
Prime Minister Shehbaz Sharif hailed the decision as a “historic step toward economic stability and investor confidence in Pakistan’s energy sector.” During the session, he stated, “This reflects our commitment to sustainable institutional reforms and reducing fiscal pressure, paving the way for a more stable and prosperous energy future.”
The cabinet also extended its appreciation to Finance Minister Muhammad Aurangzeb and his economic team for presenting a public-friendly budget for the upcoming fiscal year, acknowledging their efforts in stabilizing the national economy.
On the diplomatic front, Prime Minister Shehbaz lauded Chief of Army Staff (COAS) Field Marshal Syed Asim Munir for his address to the Pakistani diaspora during his recent visit to the US. The Prime Minister commended the army chief’s firm commitment to defending Pakistan’s borders and interests, describing it as a powerful representation of national resolve.
In recognition of this year’s exemplary Hajj arrangements, the premier paid tribute to Minister for Religious Affairs Sardar Yousaf, citing the well-managed pilgrimage as a reflection of the government’s commitment to excellence in public service.
Among other significant decisions, the cabinet approved the appointment of Kamal Uddin Tipu as Chairperson of the Commission for the Protection of Journalists and Media Professionals, based on the recommendation of the Ministry of Human Rights. The cabinet also granted an exemption under Section 21 of the Public Procurement Regulatory Authority Ordinance, 2002, to the National Power Parks Management Company Limited (NPPMCL) for procurement related to the acquisition of the Rousch Power Plant.
Additionally, the cabinet ratified the decisions made during the Cabinet Committee on Legislative Cases meeting held on May 21, 2025.
