Fears of another delay in Islamabad’s local government elections have intensified after the federal cabinet approved steps to introduce a new amendment ordinance, alongside major economic and energy-related decisions.

The federal cabinet meeting was chaired by Shehbaz Sharif, during which several important policy and legislative decisions were taken. The prime minister also extended New Year greetings and best wishes to cabinet members at the start of the meeting.

The cabinet approved action related to the Islamabad Capital Territory Local Government (Amendment) Ordinance 2025, raising concerns that local government elections in Islamabad may be postponed once again.

The decision of the Cabinet Committee on Legislation was formally ratified, paving the way for the introduction of the amendment ordinance.

Relief for electricity consumers

The federal cabinet also approved a strategic decision to provide relief to electricity consumers of distribution companies. This included ratifying action for the issuance of a presidential order amending the Off-Grid Levy Act 2025, aimed at easing the burden on consumers.

Prime Minister Shehbaz Sharif expressed satisfaction over the successful privatization of 75% shares of Pakistan International Airlines. He described the privatization of loss-making state institutions as a key pillar of the government’s broader economic reform vision.

Economic reform agenda

The prime minister said that immediately after assuming office, he had resolved to privatize all loss-making public sector entities. He termed the PIA privatization an important milestone in achieving long-term economic stability.

Shehbaz welcomed the significant increase in GDP during the first quarter of the current fiscal year. He said the government had brought Pakistan back from the brink of default and placed the economy on a path toward stability.

Regional diplomacy, foreign relations

Referring to a recent telephone conversation with the Saudi Crown Prince, the prime minister said the pace of economic and strategic relations between Pakistan and Saudi Arabia was satisfactory. He also described meetings with the United Arab Emirates leadership as extremely useful for strengthening bilateral relations and mutual consultation.

The approval of the local government amendment ordinance has sparked debate over its impact on grassroots democracy in the federal capital.

Observers say the move could further delay local polls in Islamabad at a time when calls for elected local representation are growing.