ISLAMABAD: The Government of Pakistan (GoP) and a consortium of 18 banks have signed Rs1.225 trillion financing facility agreements which was attended by the Prime Minister, Shehbaz Sharif from New York virtually, a senior official confirmed to Newzshewz.
“ Power Division and other participants remained the PM Office for hours as Prime Minister was not available to witness the signing ceremony due to other prior engagements,” sources added.
The government considered allowing a Debt Service Support (DSS) of Rs325 million per quarter, which would have increased the total facility to Rs1.275 trillion. However, it opted to maintain the current power tariff adjustment of Rs3.23 per unit which is capped at 10 per cent of total revenue of power sector.
Chief Executive Officer of CPPA-G, Rihan Akhtar, on behalf of the Ministry of Energy (Power Division), had officially invited stakeholders to the ceremony. The Prime Minister will participate virtually to mark the significance of the event.
Different Ministries including the Power Minister, Sardar Awais Khan Leghari and Advisor to PM Privatisation, Muhammad Ali were among the key speakers who shared the entire process of negotiations with the IPPs and banks.
Advisor to the Prime Minister on Privatisation, Muhammad Ali, in his speech, extended special thanks to Lt. General Zafar Iqbal, National Coordinator — an accomplished negotiator, seasoned investment banker, and power sector expert, all in one. He described Lt. Gen. Iqbal as the driving force behind the Task Force’s success, emphasizing that today’s achievement would not have been possible without his leadership.
The Task Force was effectively managed by a highly capable team led by Brigadier Faisal Jehangiri, with valuable support from Brigadier Khalid, Colonel Asim, Asim, and Farhan.
“A heartfelt thanks also goes to all members of the Task Force, especially the dedicated team in the Analysis Cell. Since August of last year, they have worked tirelessly and passionately to address Pakistan’s power sector challenges,” Ali added.
The Analysis Cell, headed by Sajid Akram of NEPRA, played a pivotal role. He was supported by Ahmed Moiz from SECP — the lead negotiator with banks for this financing — as well as Salman Rahman and Saba from NEPRA, Umair from CPPA, Asmat from SECP, and Asad Hussain, an expert from the petroleum sector.
“These individuals represent some of the most competent officers we could have assembled for this mission. Their contributions have been central to the Task Force’s success,” he concluded.
The government considered allowing a Debt Service Support (DSS) of Rs 325 million per quarter, which would have increased the total facility to Rs1.275 trillion. However, it opted to maintain the current power tariff adjustment of Rs3.23 per unit.
Chief Executive Officer of CPPA-G, Rihan Akhtar, on behalf of the Ministry of Energy (Power Division), has officially invited stakeholders to the ceremony. The Prime Minister will participate virtually to mark the significance of the event.
According to the letter, Prime Minister of Pakistan will grace the ceremony through his esteemed virtual presence.
He has invited the senior representatives of Habib Bank Limited Meezan Bank Limited National Bank of Pakistan, Allied Bank Limited, United Bank Limited, Faysal Bank Limited, Bank AL Habib Limited , MCB Bank Limited, Bank Alfalah Limited, Dubai Islamic Bank Pakistan Limited , The Bank of Punjab , Bank Islami Pakistan Limited, Askari Bank Limited, Habib Metropolitan Bank Limited, Al Baraka Bank (Pakistan) Limited, Bank of Khyber, Islamic- MCB Islamic Bank Limited and Soneri Bank Limited.
Other government’s key personalities which have been invited are Deputy Prime Minister Federal Ministers of Power, Finance, EAD, Petroleum, Planning, Information and Broadcasting, Information Technology, Advisor to Prime Minister on Privatization Governor State Bank of Pakistan National Coordinator Task Force on Power National Coordinator on SIFC Chairman NEPRA Secretaries of Power, Finance, Planning, Petroleum, Information & Broadcasting Country Director World bank, ADB and IMF Mission Head at Islamabad Additional Secretary 1&II Power Division, all members of Task Force on power Spokesperson Power Division
Chief Executive Officers of CPPA-G, PHL, NPGCL, LESCO, МЕРСО, PESCO, SEPCO, HESCO, QESCO and TESCO have also been invited.
The package, finalized with 18 banks, is aimed at partially retiring the power sector’s circular debt, which now stands at around Rs 1.7 trillion, reduced from Rs 2.5 trillion. Of the Rs 1.225 trillion, Rs 659 billion will be used to repay loans previously obtained by Power Holding Limited (PHL). The utilization of the remaining funds—whether for payments to independent power producers (IPPs), the petroleum sector, or subsidy adjustments—remains undecided.
