Islamabad (Web Desk): Prime Minister Shehbaz Sharif on Thursday said that the federal government is terminating its contract with five Independent Power Producers (IPPs) in the first phase saying that this will lead to reduction in the electricity prices.
Addressing the federal cabinet meeting in Islamabad today, the premier said that this has been done after the mutual consent of the owners of the IPPs.
PM Shehbaz informed the Cabinet that only the outstanding amounts owed to these IPPs will be paid, without any interest.
He highlighted that termination of these contracts will save power consumers about Rs60 billion and provide a benefit of around Rs411 billion to the national exchequer.
The prime minister added that it was the outcome of the strenuous collective efforts of the entire government's team.
He also recognised the inputs and support of the allied parties in this regard.
PM Shehbaz especially mentioned Chief of Army Staff (COAS) General Asim Munir, who took personal interest in the whole matter.
The premier described the development as a beginning of a journey which, he said, will be converted into progress and prosperity of the people.
Shehbaz Sharif also mentioned the relief provided by both the Federal and Punjab governments to the power consumers during the months of summer.
He expressed satisfaction that the economy is gradually heading towards stability.
“The remittances for the first quarter touched the record level of $8.8 billion. This is a confidence that Pakistan's economy is moving forward,” the premier noted.
He said that the government also took measures to bring down the inflation which has now come down to a single digit.
“This is the fulfillment of the promise made by the Pakistan Muslim League-Nawaz (PML-N) in the election manifesto,” PM Shehbaz asserted.