The Independent Power Producers (IPPs) circles have welcomed reports regarding Prime Minister Imran Khan's assurance of no review of power purchase agreements (PPAs) with Independent Power Producers (IPPs) because of the sovereign guarantees extended by the government.
It may be noted that media reports have suggested that the Prime Minister has said that reviewing the PPAs with IPPs is not possible as the government has extended sovereign guarantees and if the government goes against it and starts reviewing the PPAs, then it will have to face the legal repercussions at international level as the IPPs can move the government to arbitration.
It may be noted that some circles were critical to the inefficiencies of power sector owing to which the circular debt has increased manifold by Rs 1.4 trillion. These critics are pressing the government to review PPAs with IPPs.