Islamabad: Information Minister Shibli Faraz recently revealed that the federal government is looking to save PKR 100 billion annually through an agreement with Independent Power Producers (IPPs) — with an additional PKR 100 billion expected to be saved over a period of two to three years due to the reduction in the rate of ‘return on equity’ — according to a news source published on September 9. The minister made these comments during a media briefing that took place after a federal cabinet meeting.
The cabinet session was chaired by Prime Minister Imran Khan, who was informed on the occasion that the government was planning on shutting down all of the inefficient power stations in the country. Reportedly, various power plants (producing a total of 1,479 megawatts of power) have already been shut down, while additional power plants (producing a total of 1460 megawatts of power) are expected to be shut down within the next two years.
In addition, the cabinet was further informed that previously some power plants had been designated as “must run” units; however, their status had since been changed, and they were no longer obligated to buy expensive gas in order to remain operational.
