KARACHI - The IPPs have decided to temporarily suspend the operation of the Sovereign Guarantee call notices, already served to the Government of Pakistan as Ministry of Water and Power is engaged in discussions with IPPs with a view to finding a comprehensive solution to the issue of overdue payments owed to IPPs.

In a statement issued by IPPs Advisory Council said, by this action IPPs hope to provide the Government with time enough to take appropriate measures and thereby avoid going into Sovereign Default. This positive engagement by the Ministry of Water and Power has been welcomed and appreciated, and the IPPs are determined to work constructively with the Ministry in order to uphold the national interest.

A few days ago, advertisements titled “Government on the verge of Sovereign Default” were published on behalf of IPPs. Therein it was indicated that ten IPPs had notified the Gov that they were invoking Sovereign Guarantees due to continued payment default by NTDC/Wapda, on account of power purchased from IPPs.However, IPPs are resolved to work with the Ministry in a constructive manner and to do all that they possibly can to provide maximum support to the national economy, and arrive at a just and sustainable solution to the issue of circular debt in the power sector.