Islamabad: A plan to cut the costs and earnings of 14 Independent Power Producers (IPPs) by PKR 802 billion has been passed by the Federal Cabinet, which is led by Prime Minister Shehbaz Sharif. This choice was made today in Islamabad at a meeting of the Cabinet.
The formal statement says that the Cabinet accepted new agreements with the 14 IPPs. These agreements will cause their income and costs to go down by a large amount. There will be savings of PKR 1.4 trillion for the government because of the new rules.
According to the statement, PKR 35 billion will be taken away from the extra money that these IPPs made in earlier years. Consumers will directly gain from this change because it is expected to save them 137 billion rupees every year.
The new deals with the IPPs were praised by Prime Minister Shahbaz Sharif as a huge success. He said that these changes would save the country a lot of money, help get rid of the cycle debt, and lower the price of energy.
The statement also gave credit to the Minister for Energy and acknowledged his part in negotiating the new deals with the IPPs, which will likely have a good long-term effect on Pakistan’s energy sector.