The most recent development in Pakistan's energy sector involves the National Task Force on Energy seeking performance-based rewards for its successful renegotiation of agreements with Independent Power Producers (IPPs) and government power plants. According to Profit by Pakistan Today, the task force, formed by the Prime Minister, has achieved significant milestones, including the termination of contracts with six IPPs and renegotiation of tariffs with various projects, resulting in projected savings of around Rs4,000 billion over the life of the contracts. Additionally, the task force has settled arbitration cases with 12 thermal IPPs and recovered over Rs30 billion in excess payments. The government has also raised Rs1.225 trillion from commercial banks to address circular debt, which will be recovered from electricity consumers at Rs3.23 per kilowatt-hour over six years. The task force argues that these efforts have improved liquidity and strengthened financial sustainability in the power sector, recommending financial incentives for CPPA-G employees involved in the reforms.
ENERGY
Pakistan Energy Task Force Renegotiates IPP Contracts for Savings

Pakistan's energy task force renegotiates IPP deals, saving Rs4,000B, while a proposed cess on fertilizer firms aims to fund farmers, amid gas supply challenges and financial reforms.
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Profit by Pakistan Today
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