ISLAMABAD: The government has completed the first payment transaction of 40 per cent to 20 Independent Power Plants (IPPs) amounting to Rs89.2 billion equally divided in cash five-year Sukuk and 10-year Pakistan Investment Bonds (PIBs).
In a tweet, PM’s petroleum aide Tabish Gauhar said that the Finance Division completed this transaction in coordination with relevant organisations, including the State Bank of Pakistan and the Power Division.
In April this year, the Economic Coordination Committee had rejected a summary by the Power Division regarding the first installment of the payment to the IPPs.
The Power Division had tabled the summary before the committee for releasing the first installment of the circular debt. However, the ECC was not satisfied with the summary and Finance Minister Shaukat Tarin had decided to form a sub-committee to prepare a new payment plan.
The Ministry of Finance, in a press release, had stated that the sub-committee would present a firmed-up proposal in the next ECC meeting. “The ECC constituted a sub-committee chaired by the federal minister for finance, comprising ministers and secretaries from Energy, Petroleum and other concerned ministries for further deliberations.”
Earlier this year, the government had decided to pay IPPs Rs403 billion. According to an agreement reached between the government and the IPPs, 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).