ISLAMABAD: Prime Minister Shehbaz Sharif informed the federal cabinet on Friday that his recent meetings with United Arab Emirates (UAE) President Sheikh Mohamed bin Zayed Al Nahyan and a telephonic conversation held a day earlier with Saudi Arabia’s Crown Prince and Prime Minister Mohammed bin Salman proved highly productive in terms of strengthening bilateral relations and enhancing mutual consultations.
Chairing the federal cabinet meeting here, he said that during his telephone conversation with Mohammed bin Salman, both sides expressed satisfaction over the pace of economic and strategic cooperation between Pakistan and Saudi Arabia.
He told the cabinet that discussions were also held on further broadening the scope of bilateral engagement in multiple sectors.
During the meeting, the federal cabinet ratified a decision of the Cabinet Committee for Disposal of Legislative Cases (CCLC), leading to the postponement of the Islamabad local government (LG) elections scheduled for February 15.
“The federal cabinet ratified the decisions taken in the meeting of the Cabinet Committee for Disposal of Legislative Cases held on December 30, 2025, including confirmation of action regarding the Islamabad Capital Territory Local Government (Amendment) Ordinance, 2025,” according to a statement issued by the Prime Minister’s Media Office.
The decision was taken at a time when the process for submission of nomination papers for the local government elections had already been completed.
Addressing the cabinet, PM Shehbaz Sharif welcomed the notable growth in the country’s Gross Domestic Product during the first quarter of the current fiscal year, stating that the government had pulled the country back from the brink of default and guided it towards economic stability.
He expressed satisfaction over the successful privatisation of a 75 per cent stake in Pakistan International Airlines (PIA), terming it a major achievement and noting that the bidding process remained fully transparent.
“We had declared our resolve upon assuming power that loss-making state-owned enterprises would be privatised, and the privatisation of PIA marks a significant milestone in that direction,” the prime minister said.
He added that the privatisation of loss-making state-owned enterprises remains a core component of the government’s broader economic reform agenda.
The prime minister also congratulated members of the federal cabinet on the New Year and extended his best wishes.
The cabinet endorsed the decisions taken during the meetings of the Cabinet Committee for Disposal of Legislative Cases held on December 3 and December 30.
The federal cabinet further approved the decisions of the Economic Coordination Committee meeting held on August 26, 2025, including the provision of relief to consumers of electricity distribution companies in relation to the off-grid (captive power plant) levy and the formulation of a related strategy.
On the recommendation of the Petroleum Division, the cabinet approved action for the issuance of a presidential ordinance to amend the Off-Grid (Captive Power Plants) Levy Act, 2025, particularly concerning the sale of gas to off-grid captive power plants by a third party.
Prime Minister Shehbaz Sharif also expressed satisfaction over the Pakistan Stock Exchange’s 100 Index surpassing the 179,000-point mark, describing it as a clear reflection of growing confidence among investors and the business community in government policies.
“The country’s development trajectory continues due to the dedicated efforts of the economic team,” he said, adding that their role in improving the economic outlook and placing the country on a path of sustained growth was commendable.
Separately, Pakistan said it remains ready to play a positive role in strengthening the values of partnership, brotherhood and unity for lasting peace and stability in the region, particularly with regard to the situation in Yemen, and has appreciated the role played by Saudi Arabia and the United Arab Emirates (UAE) in this regard.
Spokesperson for the Ministry of Foreign Affairs, Tahir Andrabi, while commenting on the prevailing situation on Friday, said: “Pakistan highly appreciates the wisdom and foresightedness demonstrated by the leadership of the Kingdom of Saudi Arabia and the United Arab Emirates in addressing the situation in Yemen. These efforts reflect the shared desire of the two brotherly countries for regional peace and stability.”
He stressed that Pakistan reaffirms its support for the resolution of the Yemen situation through dialogue and diplomacy. “Pakistan reiterates its commitment to the unity and territorial integrity of Yemen and hopes that the positive steps undertaken by the Kingdom of Saudi Arabia and the United Arab Emirates will contribute towards a peaceful resolution of the issue,” he added.
On Thursday, the spokesperson had clarified that Pakistan’s relations with Saudi Arabia and the UAE have their own distinct strengths, encompassing political, economic and trade dimensions, and that it is in this spirit that Pakistan continues to play the role of mediator and facilitator for peace and prosperity in Yemen and for the brotherly people of Yemen.
“The situation in Yemen should be viewed in its own context. It should not be linked with Pakistan’s bilateral engagements with Saudi Arabia or the UAE. Pakistan enjoys excellent relations with both brotherly countries, and we will continue to further strengthen these ties,” he had said.
Meanwhile, Deputy Prime Minister / Foreign Minister, Senator Mohammad Ishaq Dar spoke later on Friday to Saudi Foreign Minister Prince Faisal bin Farhan, and both leaders discussed the latest situation in the region, according to a statement from the Ministry of Foreign Affairs. It said DPM/FM stressed that all concerned in the region must avoid any escalatory move and advised to resolve the issues through dialogue and diplomacy for the sake of regional peace and stability.
