The federal government has finalized a settlement of Rs 72 billion to five Independent Power Producers (IPPs) as part of an agreement termination. On October 10, Prime Minister Shehbaz Sharif announced the termination of contracts with these IPPs in the first phase.
According to sources, Hubco will receive Rs 36.5 billion, Rousch Power Rs 15.5 billion, Lalpir Power Rs 12.8 billion, Atlas Power Rs 15.5 billion, and Sapphire Power Rs 6 billion.
It was clarified that this settlement excludes late payment charges, with the agreements officially ending as of October 1. During a cabinet meeting, PM Shehbaz explained that only the outstanding payments owed to these IPPs would be cleared, with no interest or additional charges.
The Prime Minister emphasized that terminating these agreements is expected to save approximately Rs 60 billion for power consumers and contribute Rs 411 billion to the national treasury. He highlighted the collective efforts of the government and its allied parties in achieving this outcome and particularly acknowledged Chief of Army Staff General Asim Munir for his personal involvement in resolving the issue.
PM Shehbaz framed this development as a crucial step toward national progress and prosperity, also noting the relief measures implemented by the Federal and Punjab governments to support power consumers during the summer months.