- The government claims the move would save the national exchequer Rs238 billion.
- The Prime Minister said the government was taking all possible measures to reduce electricity tariffs.
- “A mechanism has been developed to enable the safe evacuation of Pakistanis in Syria.”
ISLAMABAD: As the incumbent government continues its efforts to tackle rising electricity tariffs in the country, the federal cabinet on Tuesday approved ‘settlement agreements’ with eight independent power producers (IPPs) operating at bagasse – a move the regime believes would benefit the national treasury. of Rs238 billion.
The federal cabinet meeting, chaired by Prime Minister Shehbaz Sharif, granted approval on the recommendation of the Ministry of Energy and Power Division, said a statement issued by the Prime Minister’s Office (PMO) .
These bagasse-based power plants included DW Unit I, Unit II, RYK Mills, Chiniot Power, Hamza Sugar, Al-Moez Industries, Thal Industries and Chinar Industries.
The development came two months after the Prime Minister announced the premature termination of power purchase agreements (PPAs) with the five oldest IPPs, with annual savings of 60 billion rupees, or around 411 billion rupees over the remaining duration of their contracts.
The federal government came under immense pressure to reconsider its PPAs with power plants following outcry across the country as the addition of capacity payment fees inflated electricity bills beyond what was affordable for the masses burdened by inflation.
During today’s meeting, participants were informed that the Central Power Purchasing Agency (CPPA) would contact the National Electric Power Regulatory Authority (Nepra) regarding a reduction in the prices of electricity produced by these plants.
Through these agreements, electricity prices for the general public would come down and the national exchequer would enjoy a profit of Rs 238 billion, the statement said.
Speaking on the occasion, Prime Minister Shehbaz said that the incumbent government was taking all possible measures to reduce electricity prices for the common man.
He stressed that national interests should always be prioritized in every decision and action, adding that promoting the country’s private sector and industries was a key priority of the government.
The federal cabinet was also briefed on the latest situation in Syria and the evacuation of Pakistanis stranded in the conflict-affected country.
The participants were informed that out of 250 Pakistani pilgrims in Syria, 79 had arrived in Beirut, from where they would be taken back to Pakistan. In addition, out of 20 teachers and students present in Syria, seven teachers had also arrived in Beirut.
The meeting was further informed that officials of Pakistan embassies in Syria and Lebanon were taking all possible measures to ensure the safe return of Pakistanis from Syria.
Meanwhile, the cabinet also approved the appointment of Brigadier General Asim Bashir Warraich as member of production control to the Taxila Heavy Industries Board, on the recommendation of the Ministry of Defense Production.
The federal cabinet also approved the establishment of the National Commission for the Fund for the Status of Women, on the recommendation of the Ministry of Human Rights.
“PTI’s civil disobedience enmity towards Pakistan”
Addressing the cabinet meeting, the prime minister slammed the Pakistan Tehreek-e-Insaf (PTI) for threatening the government to launch civil disobedience, terming the move “enmity with Pakistan”.
Prime Minister Shehbaz Sharif expressed satisfaction over the record increase in remittances and reduction in the weekly inflation rate to 3.57 percent.
Expressing satisfaction over the increase in remittances, he said the development had happened despite the call for civil disobedience by a particular political party, adding that it reflected the confidence of overseas Pakistanis in government.
He also stressed the need for political stability for economic development, saying instructions have been given to ensure that those who recently attempted to attack Islamabad are not spared.
Regarding foreign investments in the country, the Prime Minister noted that Azerbaijan would invest $2 billion in Pakistan. He mentioned that Azerbaijan’s ambassador, in a meeting with him yesterday, stressed that projects need to be identified and feasibility studies prepared so that agreements can be concluded.
Regarding the situation in Syria, Prime Minister Shehbaz said that Pakistan’s diplomatic stance remains neutral on this issue.
He said a mechanism had been worked out for the safe evacuation of around 500-600 Pakistanis from Syria via Beirut after consultations with the Lebanese Prime Minister.
— With an additional contribution from the APP