Pakistan Slashes Energy Costs by Ending Key Power Deals

The Pakistani government has terminated power purchase agreements with five companies, including its largest utility, to reduce energy costs amid economic challenges. Officials project savings of nearly $1.48 billion. The decision arises from earlier talks with the IMF for a $7-billion bailout and aims to lower electricity tariffs.

In a bid to curb escalating energy costs, Pakistan's government has terminated power purchase contracts with five private companies, including the nation's largest utility, which were supposed to last until 2027.

The move, expected to save an estimated 411 billion rupees ($1.48 billion), stems from the need to reassess these deals amid broader economic challenges, as confirmed by Power Minister Awais Leghari.

The decision aligns with a $7-billion bailout discussion with the International Monetary Fund, and authorities are negotiating with other producers to alleviate financial burdens on consumers.

(With inputs from agencies.)