ISLAMABAD: The federal cabinet, under the leadership of Prime Minister Shehbaz Sharif, has given its nod to a tariff review for eight additional Independent Power Producers (IPPs), as reported by ARY News on Tuesday.
During the meeting, which addressed the country’s political and economic landscape, the decision was made based on recommendations from the Special Task Force on IPPs.
The cabinet approved tariff renegotiations for JDW, Chiniot Power, Hamza Sugar, Al-Moiz Power Plant, Thal Industries, and Chenar Energy. Officials stated that this move is projected to save the national treasury Rs200 billion.
Previously, the cabinet had approved the cancellation of agreements with five IPPs as part of efforts to ease financial pressures.
PM Shehbaz highlighted that the terminations were finalized with the mutual consent of the IPP owners. He assured the Cabinet that only the outstanding dues will be paid, excluding any interest.
This decision is expected to save power consumers Rs60 billion and deliver an estimated Rs411 billion benefit to the national exchequer.
The Prime Minister commended the collective efforts of the government and allied parties, emphasizing the significant contributions of Chief of Army Staff General Asim Munir, who played a key role in resolving the matter.
PM Shehbaz also noted the relief measures introduced by both the Federal and Punjab governments for power consumers during the summer months.
