Govt Settles Rs 72 Billion with Five IPPs, Terminates Agreements

Islamabad, Thursday: The federal government has decided to pay a total of Rs 72 billion as a final settlement to five Independent Power Producers (IPPs), following the termination of agreements with them, according to sources cited by ARY News. This move is part of a broader effort to reduce financial strain on the national exchequer and cut costs for power consumers.

Prime Minister Shehbaz Sharif had earlier announced the termination of agreements with these five IPPs on October 10. Under the settlement, Hubco will receive Rs 36.5 billion, Rousch Power Rs 15.5 billion, Lalpir Power Rs 12.8 billion, Atlas Power Rs 15.5 billion, and Sapphire Power Rs 6 billion.

Sources confirmed that the settlement does not include late payment charges, and the agreements will be considered officially terminated as of October 1.

During a federal cabinet meeting, PM Shehbaz highlighted that the termination was mutually agreed upon with the IPP owners. He explained that the government would only pay the outstanding amounts without any interest, saving power consumers approximately Rs 60 billion and benefiting the national exchequer by about Rs 411 billion.

The Prime Minister praised the collective efforts of the government team and acknowledged the support of allied parties in reaching the settlement. He gave special recognition to Chief of Army Staff General Asim Munir for his personal involvement in resolving the issue.

PM Shehbaz described the settlement as a significant step toward economic progress and prosperity for the country, and also mentioned the relief measures provided by both the federal and Punjab governments to power consumers during the summer months.