Major Savings Expected from Termination
In a significant move, the government has decided to terminate another Costly IPP Agreement with an Independent Power Producer (IPP). This decision targets the Pakgen Power Plant, which has a capacity of 365 megawatts. The termination is expected to result in savings of billions of rupees.
Previous Terminations and Financial Impact
On December 13, the federal government decided to terminate Costly IPP agreement with six more IPPs, potentially saving an additional 300 billion rupees. Earlier, on October 10, the government announced the termination of Costly IPP Agreement with five IPPs. Prime Minister Shehbaz Sharif stated that these terminations would benefit the public by 60 billion rupees annually and save the national treasury 411 billion rupees.
Public Concerns and Government Response on Costly IPP Agreement
The Prime Minister acknowledged public concerns regarding past agreements with IPPs, which have recouped their investments and earned substantial profits, leaving ordinary citizens with little benefit. He emphasized that the government had been persistently working on this matter, forming a task force led by Awais Leghari.
New Agreements with IPPs: Will Electricity Bills Decrease in Pakistan?
Voluntary Termination and National Interest on Costly IPP Agreement
The Prime Minister highlighted that five IPPs agreed to terminate the agreements voluntarily, prioritizing national interest over personal gains. The outstanding dues of these IPPs will be paid, excluding interest. This measure aims to bring down electricity costs for the public while delivering substantial savings for the national treasury.
Conclusion: A Step Towards Financial Efficiency
The government’s decision to terminate costly IPP agreements reflects a commitment to financial efficiency and public welfare. By addressing these agreements, the government aims to reduce electricity costs and save billions for the national treasury.
Stay tuned for more updates on government actions and their impact on the economy!