ISLAMABAD – The federal cabinet on Wednesday approved Pakistan’s largest-ever financial restructuring initiative to address the chronic issue of circular debt in the power sector, targeting the elimination of Rs1.275 trillion over six years without burdening the national budget.
Chaired by Prime Minister Shehbaz Sharif, the cabinet meeting hailed the plan as a major milestone in energy sector reforms. Under the strategy, Rs683 billion of Power Holding Company debt will be refinanced, while overdue payments to Independent Power Producers (IPPs) will be settled—steps deemed crucial for restoring investor confidence and financial stability.
The premier commended the finance minister and his team for delivering a “public-friendly” budget for FY 2025–26. He highlighted key achievements, including persuading the IMF to exempt taxes on fertilisers and pesticides and slashing the income tax rate to 1% for individuals earning Rs600,000–1,200,000 annually.
Addressing regional tensions, PM Sharif expressed grave concern over the intensifying conflict between Iran and Israel, warning of its threat to global peace. Reaffirming Pakistan’s solidarity with Iran, he condemned Israeli attacks and called for urgent international intervention to enforce a ceasefire.
The prime minister disclosed he had spoken to Iranian President Masoud Pezeshkian and Turkish President Recep Tayyip Erdogan to express Pakistan’s support. He also lamented the ongoing humanitarian crisis in Gaza, urging the world to awaken to the suffering of over 50,000 Palestinians.
Deputy PM and Foreign Minister Ishaq Dar will represent Pakistan at the OIC foreign ministers’ meeting in Türkiye on June 21–22.
Sharif credited the armed forces for recent strategic victories and reaffirmed the government’s commitment to strengthening national defense, citing an expanded Public Sector Development Programme allocation of Rs1,000 billion.
The cabinet approved Kamaluddin Tipu’s appointment as chairperson of the Commission for the Protection of Journalists and Media Professionals. It also granted procurement exemptions for the acquisition of the Rousch Power Plant and ratified legislative decisions from May 21.
The premier praised Bilawal Bhutto Zardari’s diplomatic efforts abroad and lauded COAS Field Marshal Asim Munir’s strong reaffirmation of Pakistan’s commitment to defend its sovereignty.
Story by Zulfiqar Ahmed
