Pakistan’s largest private utility, Hub Power Company Ltd, has announced the early termination of an agreement with the government to sell power from a generation project. This decision follows the government’s efforts to renegotiate deals with independent power producers in order to control rising electricity tariffs. As part of the termination, the government and the Central Power Purchasing Agency have agreed to settle the company’s outstanding receivables up to October 1.

Additionally, the government has reached an agreement with five independent power producers to revisit purchase contracts, aiming to save the country Rs60bn ($216.10 million) annually. Prime Minister Shehbaz Sharif stated that these actions will provide a benefit of around Rs411bn to the national exchequer. The need to revise power deals has been a significant issue in Pakistan’s discussions with the International Monetary Fund for a bailout, as the country aims to restructure power sector debt and implement structural reforms.