Print Print edition: 2026-02-13

Pacts with IPPs, GPPs: Task force seeks performance-based rewards

Published February 13, 2026 Updated February 13, 2026 09:25am

3 min

By Mushtaq Ghumman

Add BRecorder as a trusted
source on Google

ISLAMABAD: The National Task Force on Energy, headed by Lt General Zafar Iqbal, which renegotiated agreements with Independent Power Producers (IPPs) and Government Power Plants (GPPs), has reportedly sought performance-based rewards for its members as well as for the CPPA-G team led by Rihan Akhtar, well-informed sources told Business Recorder.

The government has already announced awards for Power Minister Sardar Awais Ahmad Khan Leghari, Privatisation Adviser Muhammad Ali, and Secretary Power Division Dr Fakhre Alam Irfan for their extraordinary role in revising agreements with IPPs and GPPs, which reportedly resulted in savings of trillions of rupees.

The Power Minister has also approved financial rewards for officials of Power Holding Limited (PHL) for successfully converting expensive PHL loans into lower-cost borrowings.

The government recently raised Rs 1.225 trillion from banks to reduce circular debt, which will be recovered from consumers of distribution companies (Discos) and K-Electric at Rs 3.23 per kWh over a period of six years.

According to sources, the Task Force believes it has achieved significant milestones in advancing power sector reforms. These include:

(i) termination of contracts with six IPPs;

(ii) successful renegotiation of tariffs with thermal, bagasse and wind IPPs, yielding estimated savings of Rs 4,000 billion over the remaining life of the projects;

(iii) settlement of arbitration awards between the Government of Pakistan and 12 thermal IPPs, including recovery of past excess payments amounting to over Rs 30 billion;

(iv) resetting future Late Payment Interest (LPI) to KIBOR plus one percent across the entire power and petroleum supply chain;

(v) waiver of late payment interest exceeding Rs 400 billion; and

(vi) facilitation and implementation of the Rs 1.225 trillion circular debt financing scheme through cost-effective commercial bank financing.

The Task Force has further claimed that these initiatives have resulted in substantial financial savings for electricity consumers and contributed to the long-term sustainability of the power sector.

“Reportedly, financial incentives have been awarded to relevant entities of the Power Division, including PHL and PPMC, while CPPA-G is also considering similar rewards for its employees,” the sources quoted the Task Force as saying. They added that the lion’s share of work related to the settlement of circular debt which was undertaken by Task Force members, directly improving liquidity in the power sector, particularly in CPPA-G’s operations.

In recognition of what it described as professional efforts and exceptional performance of its members, the Task Force has recommended that CPPA-G be directed to consider appropriate financial incentives for its team while rewarding relevant CPPA-G employees.

Read Comments