Federal Minister for Information, Broadcasting, National Heritage and Culture, Attaullah Tarar, announced in the National Assembly that contracts with eight additional Independent Power Producers (IPPs) have been successfully renegotiated. This decision comes in response to concerns over rising electricity tariffs, especially for consumers using over 200 units.
Tarar noted that the government has terminated power purchase agreements with five IPPs, which is expected to save billions by reducing capacity payments. He highlighted a recent announcement by the National Electric Power Regulatory Authority (NEPRA) to lower the fuel cost adjustment by 86 paisas per unit, emphasizing the Prime Minister’s commitment to lowering electricity prices for public relief.
For the months of July to September, the federal government allocated a Rs 50 billion subsidy for consumers using 1 to 200 units, while the Punjab government added Rs 45 billion for those using between 201 and 500 units. An annual subsidy of Rs 276 billion for consumers using up to 300 units has also been set, along with an additional Rs 174 billion for K-Electric. Tarar expressed optimism for further tariff reductions as the Prime Minister’s task force on IPPs continues its work. He pointed out positive economic indicators, including $8.8 billion in remittances, reduced inflation, a lowered interest rate, increased exports, and growing foreign exchange reserves, stating, “Today, Pakistan is on the path of progress.”
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