Islamabad: In a significant move aimed at reducing electricity costs, Prime Minister Shehbaz Sharif announced the termination of contracts with five independent power producers (IPPs) during a federal cabinet meeting held today. The decision, made with mutual consent from the IPP owners, is anticipated to considerably ease financial pressures on power consumers and bolster the national exchequer.

According to Ministry of Information and Broadcasting, the Prime Minister outlined that this decision will allow for the payment of only the outstanding amounts owed to these IPPs, excluding any interest. This strategic move is expected to save power consumers approximately sixty billion rupees and deliver an additional benefit of around four hundred and eleven billion rupees to the national treasury.

Shehbaz Sharif attributed this significant achievement to the collective efforts of the government’s entire team and the valuable support from allied parties. He specifically acknowledged Chief of Army Staff General Asim Munir for his personal involvement in the matter. Describing this development as the commencement of a journey towards the nation’s progress and prosperity, the Prime Minister also noted the relief provided by both the Federal and Punjab governments to power consumers during the summer months.

Expressing optimism about the country’s economic direction, Shehbaz Sharif highlighted that the economy is on a path to stabilization with the first quarter’s remittances reaching a record high of 8.8 billion dollars. He also mentioned the government’s successful measures in reducing inflation to a single digit, fulfilling a key promise from the PML-N’s election manifesto.