The federal government has decided to pay Rs 72 billion as a final settlement to five Independent Power Producers (IPPs) after terminating agreements with them.
Prime Minister Shehbaz Sharif announced on October 10 that the agreements with the five IPPs would be terminated in the first phase.
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.
The settlement does not cover late payment charges, and the agreements will officially be considered terminated as of October 1.
During a federal cabinet meeting in Islamabad, PM Shehbaz stated that the termination was reached through mutual consent with the IPPs' owners. He clarified that only the outstanding amounts would be paid, with no interest included.
The Prime Minister noted that ending these contracts would save power consumers around Rs 60 billion and benefit the national treasury by approximately Rs 411 billion.
He credited the outcome to the hard work of the entire government team and the support of allied parties, highlighting the involvement of Chief of Army Staff General Asim Munir.
PM Shehbaz described the decision as the start of a path leading to progress and prosperity for the people.
He also mentioned the relief measures provided by the federal and Punjab governments to power consumers during the summer months.
