Islamic Finance

Pakistan finance ministry to clear Ind­ependent Power Producers dues in two tranches


Published 03 Feb,2021 via Dawn ISLAMABAD - The deal bet­ween the government and Ind­ependent Power Producers (IPPs) has entered the implementation phase after the finance ministry agreed to clear about Rs400 billion dues in two instalments of 40 per cent and 60pc within six months.

At the time of filing of this rep­ort, the power division of energy ministry was finalising a summary that could be placed before the Economic Coordination Com­m­ittee (ECC) of the cabinet for formal approval on Wednesday, as otherwise a special ECC meeting would have to be convened within a couple of days, a senior government official told Dawn on Tuesday.

In any case, he said, the agreements had to be cleared by the ECC before the next cabinet meeting so that all legal formalities were completed by February 12, the expiry date of memorandums of understanding (MoUs) signed by the IPPs and the government’s negotiation committee. The government claims a total of about Rs836bn saving over up to 20 years remaining life of IPPs.

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