The government has initiated the cancellation of agreements with several Independent Power Producers (IPPs), a step expected to save consumers Rs60 billion annually while reducing electricity tariffs.
This significant decision was made during a federal cabinet meeting chaired by Prime Minister Shehbaz Sharif, with the goal of providing financial relief to both consumers and the national exchequer. Overall, the move is projected to result in total savings of Rs411 billion.
The initial phase involves the termination of contracts with five key IPPs—HUBCO, Lalpir, Saba Power, Rousch Power, and Atlas Power. Notably, the government will not be required to make any additional payments to these companies for outstanding dues.
Prime Minister Shehbaz Sharif expressed gratitude to the IPPs for voluntarily agreeing to terminate their contracts, acknowledging their decision as a move that benefits the public interest.
This effort aligns with the government’s broader strategy of reforming the energy sector to alleviate the financial burden on consumers and improve economic sustainability.
The Prime Minister also highlighted the government’s ongoing commitment to further energy sector reforms, with the aim of continuing to bring down electricity tariffs and ensuring more efficient use of resources for long-term benefits.