ISLAMABAD (PEN) : The Federal Government has decided to terminate contracts with five Independent Power Producers (IPPs).
Speaking to the Federal Cabinet Session, Prime Minister Shehbaz Sharif stated that the government was working tirelessly to resolve the issues related to IPPs for the last seven months.
He mentioned that President of Pakistan Muslim League (N) has been focused on resolving the matter. He also noted that all relative ministries have worked day and night to bring resolve to the issue.
Shehbaz Sharif asserted that a task-force was established regarding the IPPs that was led by the Owais Leghari.
He informed that in the first phase, they have terminated contracts with five IPPs. He emphasised the importance of transparency, saying it would be unjust not to share the facts.
The Prime Minister highlighted the personal efforts of Army Chief General Asim Munir in this matter.
Shehbaz Sharif praised the five IPPs for prioritising national interest over personal gain, stating that this decision would save electricity consumers 60 billion rupees annually and would result in a total savings of 411 billion rupees for the national exchequer.
He confirmed that they would no longer have to make these payments.
The Prime Minister added that the owners of these five IPPs have accepted this initiative, which would also lead to a reduction in electricity prices.
He indicated that they would gradually review contracts with other IPPs to lower electricity tariffs, calling this just the first step in a broader reform process that aimed to benefit the entire region.