Islamabad, January 2, 2026: Prime Minister Shehbaz Sharif on Friday chaired a brief federal cabinet meeting, during which decisions taken in previous Cabinet Committee on Legislation (CCL) meetings held on December 3 and December 30, 2025, were formally ratified.
According to sources, the cabinet discussed proposed legislation regarding local government elections in the federal capital. Following a briefing by the Islamabad Chief Commissioner, the cabinet approved a further postponement of local government elections and endorsed holding the elections under the Punjab model. The Election Commission of Pakistan (ECP) had previously scheduled Islamabad’s local government elections for February 15, with results expected between February 16 and 19.
Addressing cabinet members, Prime Minister Sharif extended New Year greetings and expressed satisfaction over the successful privatization of 75 percent of Pakistan International Airlines (PIA) shares. He noted that the bidding process was conducted with complete transparency and described the privatization as a milestone in the government’s economic reform agenda, emphasizing that privatizing loss-making state-owned enterprises remains a key pillar of its policy.
Referring to economic indicators, the prime minister said that GDP growth during the first quarter of the current fiscal year was encouraging. He added that the government had successfully steered the country away from the brink of default and placed it on a path toward economic stability.
On the international front, Prime Minister Sharif highlighted his productive meetings with UAE President Sheikh Mohamed bin Zayed Al Nahyan, which strengthened bilateral relations. He also mentioned a recent telephone conversation with Saudi Crown Prince and Prime Minister Mohammed bin Salman, in which both sides expressed satisfaction over the pace of economic and strategic cooperation and discussed further expansion of bilateral ties.
The cabinet ratified decisions from the CCL meeting of December 30, 2025, including matters related to the Islamabad Capital Territory Local Government (Amendment) Ordinance 2025, as well as decisions from the December 3, 2025 CCL meeting.
Additionally, the cabinet endorsed decisions of the Economic Coordination Committee meeting held on August 26, 2025, including measures to provide relief to electricity distribution company consumers regarding the off-grid (captive power plant) levy. On the recommendation of the Petroleum Division, the cabinet approved initiating the process to issue a presidential ordinance to amend the Off-Grid (Captive Power Plants) Levy Act 2025, allowing third parties to sell gas to off-grid captive power plants.
