A relief plan has been submitted to the federal government for approval, under which Independent Power Producers are to be paid a lump sum amount of Rs. 4 trillion for reducing electricity bills by Rs. 5 per unit for all categories of consumers. The proposal put forth by the Ministries of Finance and Energy revolves around consolidating the capacity payments that are due in the next 3-5 years and paying them in advance to the IPPs.
The advance payments are likely to reduce the power tariff by at least Rs 5 per unit. The government aims to reduce the IPPs’ burden of payments and minimize the issues of revolving credit through pooling of funds for one-time lump sum payments. Arrangement of required financing first by the Ministry of Finance is proposed. Once arranged, the Ministry of Finance would transfer the funds to the Ministry of Energy for onward distribution to IPPs.
The Finance Division will move ahead only after getting approval from the International Monetary Fund IMF. Briefings are presented before Prime Minister Shehbaz Sharif in this regard, but nothing has yet been finalized. The finance ministry is continuing its close coordination with the Ministry of Energy to work out some feasible plan.
Also, see:
Pakistan, UAE, and Afghanistan set to play tri-series ahead of Men’s U19 Asia Cup 2024
