Islamabad January 15 2025: The federal cabinet on Tuesday approved the power division’s recommendation to revise the agreements (negotiated settlement agreements) with 14 Independent Power Producers aimed at reducing electricity costs and saving Rs 1.4 trillion for the national exchequer.
After discussion with the 14 IPPs under the revised agreements, the cabinet approved the recommendation of reductions of Rs 802 billion in terms of profit and cost of the said IPPs. An amount of Rs 35 billion in excess profits from previous years will be deducted from these IPPs.
The meeting of the cabinet was held here under the chairmanship of Prime Minister Muhammad Shehbaz Sharif at the PM House.
It was told in the meeting that of these IPPs, 10 operate under the 2002 Power Policy, while four others were established under the 1994 Power Policy. Besides, an agreement with one IPP from the 1994 policy has been canceled.
These revised agreements are projected to save the government Rs 1.4 trillion over their applicable duration, with annual savings of Rs 137 billion, that will benefit power consumers, the meeting was informed.
On the occasion, the prime minister lauded this achievement, highlighting that it would reduce circular debt, lower electricity prices, and lead to significant national savings.
On conclusion of successful revised agreements, he appreciated the performance of the Power Minister, Advisor, and Secretary, and the members of the Task Force that was established in this regard.
