Govt pays IPPs first instalment worth over Rs89 billion

ISLAMABAD: The federal government has paid Rs89.2 billion to 20 independent power producers (IPPs) as the first instalment of payment, ARY News reported on Friday.

The Finance Division has notified that 20 IPPs have been paid Rs89.2 billion as the first instalment of the payment following to directives of Prime Minister Imran Khan.

The payment to the power producers was completed by the State Bank of Pakistan, Power Division and other concerned departments.

In a Twitter message, Special Assistant to Prime Minister on Power and Petroleum Tabish Gauhar said that the first payment transaction, approved by the Government of 40 per cent to 20 IPPs amounting to Rs 89.2 billion have been completed in coordination with SBP and Power Division.

He added that the development shows the commitment of the government to resolve the longstanding issue on a permanent basis.

I am pleased to inform that the first payment transaction, approved by the Government of 40% to 20 IPPs amounting to Rs 89.2 bln have been completed in coordination with SBP and Power Division.

This shows our commitment to resolve this longstanding issue on a permanent basis.

— Tabish Gauhar (@TabishGauharPK) June 4, 2021

Earlier in May, the Economic Coordination Committee (ECC) had given the approval to pay the first instalment of Rs89 billion to 35 Independent Power Producers (IPPs) out of a total of 47.

The ECC, which met in Islamabad on Wednesday with Finance Minister Shaukat Tarin in the chair, had approved Rs89 billion for 35 IPPs, whereas payment to the remaining 12 IPPs may be withheld owing to NAB investigations.

It had also approved subsidies for electricity consumers during phase-I in consultation with Ehsaas and Finance Division.