Prime Minister Shahbaz Sharif said that in the first phase, they are terminating power purchase agreements with five independent power producers (IPPs) promising relief to the inflation-hit people. The federal cabinet under the chair of Prime Minister Shahbaz Sharif has started terminating the IPPs agreement. Electricity consumers will benefit by 60 billion rupees per year, the price per unit of electricity will decrease, and the country’s treasury will save 411 billion rupees. Speaking at the Federal Cabinet meeting, Shahbaz Sharif said that by the grace of Allah, the country’s economy is rapidly moving towards stability. He said that five IPPs owners preferred national interest to personal interest, they voluntarily agreed to terminate these contracts, and these IPPs played a key role in the initiation of public relief. The whole cabinet including me is grateful to these IPPs owners. He said they would reduce the electricity tariff by gradually revising the contracts with other IPPs. Shahbaz Sharif said that the common man faced immense difficulties including inflation, he is grateful to the people for enduring the challenges patiently, the difficulties have not ended, nor are the rivers of milk and honey flowing. He said that Pakistan is moving forward and we have to complete this journey with speed, the problems were faced in seven months, and relief was given to domestic consumers of up to 200 units in electricity bills. Prime Minister said that the government in Punjab provided relief for two months to the electricity consumers of up to 500 units, the government is aware of the people’s problems. There was an uproar across Pakistan recently as people have been receiving high electricity bills, which prompted the Shehbaz-led government to reconsider the agreements with IPPs, as capacity payment charges are included in power bills. These five IPPs kept the nation’s interests first and their interests aside. The take and pay system has ended for them, the prime minister told his cabinet members. Addressing the cabinet meeting, the premier said that tariff reduction would happen by gradually revising agreements with other IPPs in the power sector. Earlier this month, the IPPs had agreed to terminate their contracts as demanded by the government. The entire cabinet, including me, is grateful to these IPP owners, he added, further mentioning that the task force established for the reform of the power sector and the members of the federal cabinet deserve our praise for this effort. During the cabinet meeting, the details of the agreement between the task force and the owners of the IPPs including Hubco, Lalpir, and Saba Power, Rousch Power, and Atlas Power, and the process of concluding the agreements with them were presented before the cabinet. Out of these IPPs, the Privatization Commission will privatize Rousch Power established under a build-own-operate-and-transfer agreement after the transfer of its ownership to the government. The ownership of the other four IPPs will remain with their owners, while the government after terminating the government contract will make no payment. Meanwhile, Pakistan’s biggest private utility, Hub Power Company Ltd, unveiled on Thursday the premature termination of a pact for the government to buy power from a southwestern generation project. The government and market operator the Central Power Purchasing Agency (CPPAG) agreed to settle the company’s outstanding receivables up to Oct 1, it told the Pakistan Stock Exchange in a notice. The step came after the government re-negotiated deals with independent producers to rein in electricity tariffs as households and businesses buckled under soaring energy costs. A decade ago, Pakistan approved dozens of private projects by IPPs to tackle chronic shortages. Short of funds, the government built the fixed costs and capacity payments into consumer bills.