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Reason of News:

Following the advance meeting including the IPP legation in conformity with negotiating the price concerning a round loan or the edition of the Memorandum concerning Understanding (MOUs) signed including the rule producers, the Government agreed by grant Rs135 billion of the Rs450 billion round minus yet in imitation of unraveling the remaining balance by using the stop regarding the modern calendar year. [1] Here, we will discuss Ministry to pay 30pc of circular debt to IPPs.

Finance Ministry Report:

Toughness the pay up board noted so a legation on Independent Power Producers’ (IPP) managements finished an assembly including Finance Minister Dr. Abdul Hafeez Shaikh an epoch in the past in imitation of discussing the reimbursement sketch because of past-due circular lend receivables below the currently signed MoUs. This was the forward assembly as a doable design was agreed upon via both sides. The IPP agency termed the sketch “acceptable” and the government officials suggested so much such was affordable because of the government. [1]

The Government has agreed to pay Rs135 billion of the Rs450 billion circular debt and to resolve the entire balance by the end of the current calendar year.

It has been agreed to that amount on the aggregate magnificent receivables amounting in imitation of Rs450bn, the regime will deliver 30 by cent currently then the remaining payment will bust region of equalizing tranches through June and December. Sources also suggested that amount the next round concerning conferences in the committee because implementation concerning MOUs signed along IPPs would smoke region concerning Jan 4 then 5 among Islamabad. [1]

New Agreement:

The society is conveyed via Dr. Shaikh or includes concerning Special Assistant in imitation of the Prime Minister over Power Tabish Gauhar, Chairman on Federal Land Commission over Pakistan Babar Yaqoob Fateh Mohammad, any had earlier led the negotiations together with IPPs, secretaries on rule then cash and the head executive over Central Power Purchasing Agency. The conferences pleasure finalize the amendments in accordance with the rule buy agreements based on the MoUs signed in Aug 2012. [1]

Cabinet with IPPs meeting

The government is likely to renew the contracts together by the IPPs in line with stores of more than Rs850 billion during the next ten years, a legal cash board said, including whether the finished diagram was likely to have been finalized among a variety of extra gatherings in the policy therefore the IPPs scheduled for January. [1]


On the mean hand, the scheduled payment plan desire assist the IPPs to improve their liquidity position then expand the businesses, in most cases into the present power sources kind of renewables and coal-based plants among Tharparkar. The official introduced up to expectation even had been boundaries because of the furnace oil-based government plants, since even had been various upcoming selections within the limit sector. [1]


Published in Dawn, January 2nd, 2021:

  1. https://www.dawn.com/news/1599191/ministry-to-pay-30pc-of-circular-debt-to-ipps [1]

IPPs stand for : Independent Power Producers

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