ISLAMABAD: The Finance Ministry is prohibited from paying Rs 180 billion to Independent Power Generators (IPPs) immediately under a Rs 450 billion payment agreement signed on Monday. جیو اردو Reported
According to the agreement documents, two dozen IPPs, including Hub Power Company Limited (HUBCO), had entered into a preliminary agreement with the government under which the finance ministry would pay Rs 40,080 billion, or Rs 40,080 billion, to the IPPs. Will – Immediately, while the remaining 60% – or 270 billion rupees will be paid in the next financial year.
According to the documents, the IPPs informed the Pakistan Stock Exchange (PSX) of the initial agreement, while Hubco provided information about the agreement with the Central Power Purchasing Agency (CPPA).
The documents further state that under the agreement, the late payment surcharge will be reduced to 2% in the first 60 days after the agreement.
The document also emphasizes that under the agreement, IPPs will be given a profit in Pakistani rupees instead of US dollars, while final approval of the agreement will be sought from the committee and the cabinet.