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Revised IPP Deals to Save Govt Rs1.4 Trillion: PM Shehbaz
The federal cabinet, led by PM Shehbaz Sharif, approved revised agreements with 14 IPPs, saving Rs1.4 trillion for the government and reducing electricity costs for consumers.
ND
by News Desk
2025-01-14
Revised IPP Deals to Save Govt Rs1.4 Trillion: PM Shehbaz

The federal cabinet, under the leadership of Prime Minister Shehbaz Sharif, has approved revised agreements with 14 Independent Power Producers (IPPs). The agreements are projected to save the government Rs1.4 trillion over time while reducing electricity costs for consumers.

During the cabinet meeting, the Energy Ministry outlined key elements of the revised agreements, including a proposed reduction in profits and operational costs for the 14 IPPs, amounting to Rs802 billion. Additionally, Rs35 billion will be deducted as excess profits from previous years.

Consumer Benefits
The revised agreements promise an annual saving of Rs137 billion, which will directly benefit electricity consumers. Over the years, these savings will amount to Rs922 billion, providing much-needed relief to households and businesses facing high energy costs.

Prime Minister’s Remarks
Prime Minister Shehbaz Sharif hailed the revised agreements as a “great success,” emphasizing their potential to save the national exchequer, curb revolving debt, and bring down electricity prices. He commended Energy Minister Owais Leghari, the Power Division Secretary, and the relevant task force members for their contributions to this achievement.

Further Agreements Under Review
The Task Force for Power Division also presented proposals to revise agreements with 18 additional IPPs. If approved, these agreements could bring total savings from revised IPP deals to Rs1.457 trillion.

Structural Reforms
The cabinet also approved organizational changes, including the merger of the Anti-Narcotics Division with the Ministry of Interior and the Aviation Division with the Ministry of Defense.

These reforms represent a focused effort by the government to streamline operations and address long-standing issues in Pakistan's energy sector.

 

 
Tagged:

PakistanEconomy

EnergyReforms

IPPAgreements

ElectricitySavings
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