The federal cabinet has approved settlement agreements with eight bagasse-based independent power producers (IPPs), aiming to save Rs. 238 billion for the national exchequer.
According to Pak Observer, this decision follows the earlier cancellation of power purchase agreements with five IPPs, which promised annual savings of Rs. 60 billion, totaling Rs. 411 billion over the remaining contract period.
Prime Minister Shehbaz Sharif chaired the meeting, where the Ministry of Energy and Power Division recommended the move, according to a statement from the Prime Minister’s Office. The affected IPPs include DW Unit I, Unit II, RYK Mills, Chiniot Power, Hamza Sugar, Al-Moez Industries, Thal Industries, and Chinar Industries.
Officials informed the cabinet that the Central Power Purchasing Agency would approach the National Electric Power Regulatory Authority (NEPRA) to lower tariffs for electricity generated by these plants. This step is expected to cut power prices for consumers and provide significant fiscal relief.
Prime Minister Shehbaz emphasized the government’s commitment to reducing electricity costs and easing financial burdens on the public.
