NEPRA approves a 10-year capacity expansion plan

The Cabinet Committee on Energy will approve Rs 403 billion to the Independent Power Producers (IPPs), as decided in a meeting held in Islamabad today, market analysts said.

A large number of IPPs including Hubco, Engro, and others had signed a Memorandum of Understanding (MoU) with the government of Pakistan in the last few days. The government had constituted a committee in August 2019, to look into issues faced by the power sector, including purportedly higher profits made by the IPPs. It was also to recommend a way forward. The Committee presented its report in March 2020.

According to analysts, at least 47 IPPs have to sign this agreement following successive rounds of discussion with the IPPs and other power sector stakeholders.

The Implementation Committee conducted various sessions with IPPs for the payment mechanism to clear their outstanding payables and to convert the MoUs into an agreement.

According to the government and the IPPs agreement, all undisputed outstanding amounts due and payable to IPPs under the power purchase agreement, as of 30th November 2020, will be paid in two installments (each installment comprising of one-third cash and two-thirds government-issued PIBs and Sukuks).

In a separate notice to PSX today, Engro Powergen Qadirpur Limited (EPQL) had also announced that it has entered into an MoU with the committee for negotiations with Independent Private Power Producers.

“In line with the understanding reached in the MOU, EPQL and Central Power Purchasing Agency (Guarantee) Limited (the “Parties”) will now enter into a binding agreement based on the terms of the MoU,” the notice said.

In another notice today, M/s Saif Power Limited informed the Pakistan Stock Exchange (PSX) that it has initialed an agreement with Central Power Purchasing Agency (Guarantee) Limited (Power Purchaser) aligned with the Memorandum of Understanding (MOU) dated August 12, 2020.

Hamza Habib is a senior journalist and former editor of who has previously worked for leading newspapers and TV networks of the country. He mainly writes on the economy and political issues.


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