Pakistan ends power deals to save $1.48bn, cut tariffs

Move comes as households and businesses struggle with soaring energy costs

20241011 Pakistan electricity

Pakistan a decade ago approved dozens of private projects by independent power producers to tackle chronic shortages. But the deals resulted in excess capacity after an economic crisis reduced consumption. © Reuters

KARACHI (Reuters) -- Pakistan's government has ended power purchase contracts with five private companies, including one with the country's largest utility that should have been in place until 2027, to cut costs, officials said on Thursday.

The news confirms comment from Power Minister Awais Leghari to Reuters last month that the government was renegotiating deals with independent power producers to lower electricity tariffs as households and businesses struggle to manage soaring energy costs.

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