The Federal Cabinet, chaired by Prime Minister Shehbaz Sharif, approved settlement agreements with eight independent power producers (IPPs) operating on bagasse, a byproduct of sugarcane. The decision, made on the recommendation of the Ministry of Energy and the Power Division, is expected to bring significant relief to electricity consumers and benefit the national exchequer.

The approved power plants include DW Unit I, Unit II, RYK Mills, Chiniot Power, Hamza Sugar, Al-Moez Industries, Thal Industries, and Chinar Industries. Following the approval, the Central Power Purchasing Agency (CPPA) will approach the National Electric Power Regulatory Authority (NEPRA) to implement a reduction in power tariffs for electricity generated by these plants.

According to a press release from the Prime Minister’s Office Media Wing, the agreements are projected to save the national exchequer Rs. 238 billion, while also reducing electricity prices for the general public.

During the meeting, Prime Minister Shehbaz Sharif reiterated the government’s commitment to lowering electricity costs for the common man. He emphasized that national interests must remain the top priority in all decisions and actions. The prime minister also highlighted the importance of promoting the private sector and industries to drive economic growth.

In addition to the energy sector agreements, the Federal Cabinet approved several other important measures:

Appointment of Brigadier Asim Bashir Warraich as Member of Production Control on the Board of Heavy Industries Taxila, based on the recommendation of the Ministry of Defence Production.
Establishment of the National Commission for the Status of Women Fund, as proposed by the Ministry of Human Rights, to support initiatives for women’s empowerment and rights.