ISLAMABAD: In a major development, a government team and independent power producers (IPPs) on Saturday reached an understanding on reduction in power tariff. According to the details, the negotiation between the government and the IPPs of renewable power plants held in Islamabad on Saturday during which the power producers agreed to reduce the power tariff. Sources said that the two sides would sign the MoU after the formal approval of the federal cabinet.

Sources said that the agreement would also help reduce the country's circular debt. Both the sides agreed on amendments in the companies act in the wider interest of the country, the sources said. Under the agreement, the government would help the IPPs in generating maximum electricity from solar sites.

Earlier on November 3, industries would get power at half the tariff from then on which will save them about Rs21 billion collectively in production costs, ensuring an impetus for industrial growth and job creation, federal energy minister Omar Ayub had said. Talking to a private channel, the federal minister, expanding on Prime Minister's package announced earlier that day, had said the bracket to benefit the most from industrial relief package is of small industrialists.