Federal cabinet 'approves' tariff review for eight more IPPs

ISLAMABAD: The federal cabinet, chaired by Prime Minister Shehbaz Sharif, ‘approved’ the tariff review for eight more Independent Power Producers (IPPs), ARY News reported on Tuesday, citing sources

The meeting chaired by PM Shehbaz Sharif discussed the country’s overall political and economic situation.

The meeting review was decided based on recommendations forwarded by the Special Task Force on IPPs.

The federal cabinet meeting approved tariff renegotiations with JDW, Chiniot Power, Hamza Sugar, Al-Moiz Power Plant, as well as Industry, Thal Industries, and Chenar Energy.

The cabinet was briefed that this decision is expected to save the national treasury Rs200 billion.

Earlier, the cabinet approved the cancellation of agreements with five IPPs, marking a continued effort to reduce financial burdens.

Read more: Govt to pay Rs 72bn to five IPPs in final settlement

PM Shehbaz said the termination was done after the mutual consent of the owners of the IPPs.

The Prime Minister informed the Cabinet that only the outstanding amounts owed to these IPPs will be paid, without any interest.

He said that termination of these contracts will save power consumers about sixty billion rupees and provide a benefit of around four hundred and eleven billion rupees to the national exchequer.

PM Shehbaz Sharif said it was the outcome of the strenuous collective efforts of the entire government team. He also recognized the inputs and support of the allied parties in this regard. He especially mentioned that Chief of Army Staff General Asim Munir, who took personal interest in the whole matter.

PM Shehbaz Sharif also mentioned the relief provided by both the Federal and Punjab governments to the power consumers during the months of summer.