Hammad Azhar, the federal minister of energy, declared that the federal government and K-Electric are working on a new power purchase agreement (PPA) on Sunday.

Hammad Azhar said on Twitter that the federal government and KE had agreed on principles to settle most of their long-standing conflicts over additional supplies, payment processes, and subsidy disbursements.

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“InshAllah, we will be moving quickly toward signing a new PPA,” he said, noting that other IPPs around the country have already done so.

On May 5, the Economic Coordination Committee (ECC) approved the first instalment of Rs89 billion to 35 of the 47 independent power producers (IPPs).

The ECC, which met in Islamabad under the chairmanship of Finance Minister Shaukat Tarin, approved Rs89 billion for 35 IPPs, although payment to the remaining 12 IPPs could be delayed due to NAB investigations.

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