Prime Minister Shehbaz Sharif has said that the government would terminate its contract with five independent power producers (IPPs) in the first phase and promised a relief to the inflation-hit masses.
Consumers have been receiving inflated electricity bills across the country recently that prompted the government to reconsider the agreements with IPPs as capacity payment charges are included in power bills.
The prime minister told the Cabinet that consumers will save Rs60 billion annually while the national exchequer will save Rs411 billion. These five IPPs have kept the national interest first and that of their aside.
He added that by the grace of Allah, Pakistan’s economy is rapidly stabilising. We have fulfilled our promise to work tirelessly for public relief, he said.
The premier said that tariffs would also be reduced by gradually revising agreements with other IPPs.
He said that the inflation rate, which was over 30 per cent in the same month during the previous year, now stands at 6.9 per cent.
