Settlement agreements approved with 8 IPPs to lower power tariffs

The federal cabinet, chaired by Prime Minister Shehbaz Sharif, has approved settlement agreements with eight Independent Power Plants (IPPs) that run on Bagasse, a move aimed at reducing electricity tariffs and benefiting consumers.

The approval was granted during a cabinet meeting in Islamabad on Tuesday, following recommendations from the Ministry of Energy and Power Division.

The agreements will see the Central Power Purchasing Agency approach the National Electric Power Regulatory Authority (NEPRA) to request a tariff reduction for electricity generated by these power plants.

According to the government, this reduction will result in savings of Rs238 billion for the national exchequer and lower electricity costs for the common consumer.

The approved power plants involved in the settlement include JDW Unit-I and Unit-II, RYK Mills, Chiniot Power, Hamza Sugar, Al-Mueez Industries, Thal Industries, and Chinar Industries.

In addition to the energy agreements, the cabinet approved the appointment of Brigadier Asim Bashir Warraich as Member Production Control in the Board of Heavy Industry Taxila, on the recommendation of the Ministry of Defence Production.

The cabinet also gave its nod for the establishment of the National Commission for the Status of Women Fund, following a recommendation from the Ministry of Human Rights.

PM Shehbaz, speaking at the meeting, emphasised the government’s efforts to reduce electricity prices for the public. “The national interest should always come first in our decisions and initiatives,” he said. “The development of the private sector and industries is a top priority for the government.”

The cabinet also received a briefing on the evacuation of Pakistani nationals from Syria in light of the ongoing crisis. Out of 250 Pakistani pilgrims stranded in Syria, 79 have successfully reached Beirut and are now being brought back to Pakistan.

Additionally, seven out of twenty Pakistani teachers and students in Syria have also reached Beirut. Authorities at the Pakistani embassies in Syria and Lebanon are actively working to ensure the safe return of all nationals.