ISLAMABAD (Dunya News) - Federal Minister for Information Attaullah Tara said on Friday the government had terminated contracts with five independent power producers (IPPs).
He said termination of contracts with the five IPPs would help bring down the electricity prices leading to a positive impact on the economy as well.
Speaking on the National Assembly floor on calling attention notice, he stated that reduction in electricity prices was PM Shehbaz Sharif’s first and foremost priority. He said contracts with another eight power producers were on the cards.
He also mentioned that NEPRA reduced 86 paisa per unit on fuel price adjustment. He highlighted the federal government’s people friendly measures including Rs50 billion subsidy for consumers using up to 200 electricity units while government provided Rs276 billion subsidy upto 300 units every year. Tarar mentioned that K-Electric was being provided a subsidy of 174 billion while lifeline and non-life line consumers were already being provided subsidy annually. However, users were given additional subsidies this year.
The government was more focused on the issues of power, he asserted. Attaullah Tarar stated that fuel cost adjustment and closure of IPPs would reduce the electricity bills.