Major Relief for Electricity Consumers as Revised Agreements with IPPs Approved!

In a recent development, the federal cabinet of Pakistan, led by Prime Minister Shehbaz Sharif, has approved revised agreements with 14 Independent Power Producers (IPPs). This decision is expected to bring significant relief to electricity consumers by reducing power prices and curbing the growing circular debt in the energy sector.

As per the details, the cabinet meeting highlighted that the agreements aim to cut down the profits and costs of these IPPs, resulting in savings of approximately 802 billion rupees. Additionally, the government plans to recover an extra 35 billion rupees from excessive profits made by IPPs in previous years. Over the course of these agreements, the government is projected to save 1.4 trillion rupees.

Prime Minister Shehbaz Sharif lauded the task force for successfully renegotiating the agreements. He emphasized that this initiative marks a major step toward addressing circular debt and reducing electricity tariffs. The move has been described as a win-win situation for the government, the energy sector, and the general public.

In addition to this breakthrough, the federal cabinet has also approved key measures to streamline government operations. It has decided to merge the Anti-Narcotics Division with the Ministry of Interior and the Aviation Division with the Ministry of Defense. These mergers are expected to reduce administrative costs, improve efficiency, and save the national treasury significant funds annually.

The Anti-Narcotics Force will now operate as a wing under the Ministry of Interior, cutting expenses related to salaries and operational activities, saving 183.25 million rupees each year. Similarly, merging the Aviation Division with the Ministry of Defense will lead to savings of 145 million rupees annually.

These efforts reflect the government’s commitment to reducing unnecessary expenditures, boosting efficiency, and easing the financial burden on citizens. With the revised IPP agreements and structural reforms in place, Pakistan aims to create a more sustainable energy and administrative system.