Govt ends contracts with five IPPs

ISLAMABAD
Prime Minister (PM) Shehbaz Sharif while taking major step to free the power consumers from burden of capacity payments has announced to terminate contracts with 5 Independent Power Producers (IPPs).
This move will extend benefit of Rs 60 billion to power consumers annually and ensure saving of Rs 411 billion to national kitty. Federal cabinet which met under PM Shehbaz Sharif accorded approval to termination of contracts with 5 IPPs.
Talking in federal cabinet meeting PM said national economy is heading towards stability on fast track basis.
The contracts have been terminated with Rousch power, Lalpir power, Saba power, Atlas power and Hubco power companies. PM said contracts for purchasing electricity are being terminated with 5 IPPs in first phase.
He held owners of 5 IPPs preferred national interest to their personal interest. 5 IPPs agreed on terminating these contracts voluntarily. These five IPPs played vital role in the move of providing relief to public. The entire cabinet including me are grateful to owners of these IPPs.
He held IPPs contracts will be reviewed gradually and tariff will be reduced. Quarterly remittances have remained record high; Surge in quarterly remittances reflects confidence of Overseas Pakistanis.
He remarked the common man endured enormous difficulties including inflation. We are grateful to people for enduring difficulties with patience. The hardships have not come to end.
He underlined Pakistan is moving ahead, We faced as team the problems and challenges during 7 months.
Relief upto 200 units was given to poor consumers in electricity bills.
He indicated Punjab government provided relief to consumers upto 500 units during two months.
Nawaz Sharif tried to lower power tariff and he repeatedly advised us in this respect, he added. Nawaz Sharif said that power tariff be scaled down. Therefore, relief was given to consumers in extremely hot weather.
Shehbaz Sharif said it was the outcome of the strenuous collective efforts of the entire government’s team. He also recognized the inputs and support of the allied parties in this regard. He especially mentioned Chief of Army Staff General Asim Munir, who took personal interest in the whole matter.
He indicated China and Saudi Arabia played important role in talks with IMF. Finance minister will once again hold meeting with IMF.