Prime Minister Shehbaz Sharif praises IPPs for role in public relief efforts

The termination of IPPs will benefit electricity consumers by Rs60 billion annually.

Prime Minister Shehbaz Sharif announced that five Independent Power Producers (IPPs) have played a key role in initiating public relief measures, akin to "the first drop of rain."

Speaking at a federal cabinet meeting, he expressed gratitude to the IPP owners and informed attendees that the process of terminating agreements with these companies has commenced, Express News reported.

This initiative is expected to provide electricity consumers with an annual benefit of Rs60 billion and save the national exchequer Rs411 billion in total. “By the grace of Allah, the country's economy is rapidly stabilising. We have fulfilled our promise to work tirelessly for public relief,” prime minister stated.

Shehbaz Sharif revealed that in the first phase, agreements with five IPPs for purchasing electricity are being terminated, resulting in substantial savings for both consumers and the national treasury. He added that the government will gradually review contracts with other IPPs to reduce tariffs further.

He noted the inflation rate had exceeded 30% but has now dropped to 6.9%, providing relief to the public. With significant efforts from the economic team, the government achieved the target of 7% growth for 2025 a year early.

The Prime Minister commended the IPP owners for prioritising national interests over personal gains, as they voluntarily agreed to terminate contracts with the government. He acknowledged their significant role in the initial steps towards public relief.

Additionally, Shehbaz Sharif lauded the task force established for reforms in the electricity sector and members of the federal cabinet for their commendable efforts.

He highlighted the recent relief provided in electricity bills during the summer by the federal government and the Chief Minister of Punjab, assuring the public that all promises made will be fulfilled.

Furthermore, he reported a record increase in remittances from overseas Pakistanis, reflecting their confidence in government policies. The last quarter saw remittances reach $8.8 billion, and he expressed gratitude towards the expatriates for sending their hard-earned money back to Pakistan.