The federal government has announced a final settlement of Rs 72 billion to five Independent Power Producers (IPPs) after terminating their agreements. On October 10, Prime Minister Shehbaz Sharif stated that this is the first phase of ending these contracts.
As part of 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. Late payment charges are not included, and the agreements are considered officially terminated from October 1.
At a federal cabinet meeting in Islamabad, PM Shehbaz explained that these terminations were agreed upon by both the government and the IPP owners. He clarified that only the pending amounts will be paid, without any interest.
The Prime Minister emphasized that ending these contracts will save power consumers about Rs 60 billion and benefit the national treasury by around Rs 411 billion. He credited the success to the efforts of the government and the support of their allies. This move is expected to help stabilize the power sector and reduce financial burdens on consumers.
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