Federal govt, IPPs reach agreement, announces Shahzad Qasim

ISLAMABAD: Federal government on Saturday announced that it has reached an agreement with the independent power producers (IPPs), ARY NEWS reported.

Announcing the decision in a presser while flanked by Information Minister Shibli Faraz, Special Assistant to PM on Power Division Shahzad Qasim said that they have secured a deal with the IPPs, linking the profit of local investment with the rupee.

“We have successfully held talks with the IPPs and signed a renewed deal with them,” he said adding that under the agreement the equity would be paid in rupees instead of dollars.

Shahzad Qasim further said that the NEPRA would examine the performance of the power units run by the IPPs.

Speaking on the occasion, Shibli Faraz said that they could not unilaterally nullify the agreement with the IPPs, therefore the task force formed by the prime minister reviewed the power agreement.

None of the government in the past held talks with them to provide electricity at a low price, he said and blamed that in past power generation plants were installed without any proper planning.

Read More: Omar Ayub holds talks with IPPs to lower power tariff

It was due to the past agreements that the masses were forced to pay hefty bills, the information minister said and added that it has affected local consumers and exports in the country.

He said that in past the power tariff was linked with the dollar rate.  “Even the circular debt was due to the policies of the previous governments,” Shibli Faraz said.