Pakistan saves Rs.4.3 trillion after revising IPP contracts
- By Web Desk -
- Aug 22, 2026
The Federal Government says it has saved Rs.4.3 trillion by suspending and renegotiating agreements with six independent power producers (IPPs).
The Ministry of Energy presented details of capacity payments to parliament, saying the contracts were suspended following recommendations by a government task force.
The task force also reviewed agreements with several other power-generation companies as part of efforts to reduce the cost of electricity and the government’s financial burden.
According to the figures presented to parliament, the government paid IPPs Rs.6.4 trillion (Sixty-four trillion, six billion) over the past five years.
During the final two years of the Pakistan Tehreek-e-Insaf (PTI) government, IPPs received around Rs.1379 billion in payments.
Under the current government, payments to IPPs have exceeded Rs.3709 billion.