The federal government has decided to terminate its contract with five independent power producers (IPPs) in the first phase, Prime Minister Shehbaz Sharif said on Thursday, vowing to provide relief to inflation-ridden masses.
The premier said that the government’s move will help consumers save Rs60 billion overall annually, while the national exchequer will also save Rs411 billion.
Addressing the cabinet, PM Shehbaz said: “These five IPPs kept the nation’s interests first and their interests aside. The take and pay system has ended for them.”
The federal government faced immense pressure to reconsider its agreements with the IPPs following outcry across the country as consumers received high power bills owing to addition of capacity payment charges.
This is a developing story and is being updated with more details.
