Government cancels costly power deals, saving trillions in annual capacity payments.
LAHORE: (UrduPoint/UrduPoint / Pakistan Point News-Nov,4 , 2025) The government of Pakistan has saved trillions of rupees by canceling and revising several Independent Power Producer (IPP) contracts.
According to sources in the Ministry of Energy, despite facing significant pressure, multiple expensive IPP agreements were terminated. The ministry revealed that these cancellations and revisions have resulted in savings of Rs 3.6 trillion.
Officials explained that around 20 years ago, 40 IPP deals were signed for costly electricity generation projects. Even when these plants did not produce electricity, billions of rupees were paid annually as capacity charges. Without the revisions, the public would have been forced to bear an annual financial burden of Rs 3.6 trillion.
Industry representatives have lauded the move, saying that for years, around 40 families held the country hostage through these IPP contracts. They also urged the government to take strict action against those who continued to collect billions in payments despite non-operational power plants.
