Prime Minister Shehbaz Sharif has announced a significant reduction in electricity bills for consumers, amounting to Rs. 60 billion in annual savings, as the government moves forward with the premature termination of agreements with Independent Power Producers (IPPs).

In a recent statement, the Prime Minister revealed that the federal cabinet has decided to terminate the contracts of five IPPs in the initial phase, aiming to alleviate the burden of capacity payments on consumers. This move is expected to save the government Rs. 411 billion and potentially reduce the per-unit price of electricity.

Plans are also underway to gradually revise contracts with other IPPs, according to the Prime Minister. He credited his economic team for their hard work and noted that the goal of reducing inflation has been achieved ahead of schedule, with inflation dropping from over 30 percent to 6.9 percent.

The Prime Minister expressed gratitude to the five IPP owners for voluntarily agreeing to terminate their contracts. He also acknowledged the efforts of the federal cabinet and the task force dedicated to power sector reforms.

Additionally, the Prime Minister highlighted the record inflow of workers’ remittances from overseas Pakistanis, which reached $8.8 billion in the last quarter, further contributing to the country’s economic stability.