ISLAMABAD: While the government has repeatedly claimed that it is seeking to reduce its dependence on Independent Power Producers (IPPs), the disclosure of new agreements extending for 30 and 40 years has raised questions about the government’s power-sector policy.
Details of the agreements signed with various IPPs, including their effective periods, have come to light.
The current government has also reportedly entered into new agreements with four IPPs. According to the details, four such agreements were signed in 2025.
Among them, the government signed a 30-year agreement with Jamshoro Coal Power Plant on July 30, 2025.
The development comes amid ongoing government efforts to renegotiate existing power purchase agreements with IPPs and reduce the financial burden of capacity payments on the national exchequer.
Further details regarding the other IPPs and the duration of their agreements have also emerged.
