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ISLAMABAD: The federal government has decided to privatize the country’s two liquefied natural gas (LNG) power plants to fulfill the demands of the International Monetary Fund (IMF) under the $6 billion Extended Fund Facility (EFF).
According to sources, the government has sent the privatisation plan of LNG power plants – Haveli Bahadur Shah and Balloki – to the IMF, promising that the two plants would be sold off in June.
The sources further claimed that the IMF has demanded immediate privatisation of the LNG power plants by the end of June 2022, and at the request of the IMF, the Privatisation Commission started work on the same.
Haveli Bahadur Shah and Balloki power plants are generating electricity at full capacity. Both the power plants were installed during the Pakistan Muslim League-Nawaz era.
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While demanding to sell them, the IMF has suggested that privatisation of high-performance power plants would fetch a good price.Both the dual-fuel power plants are capable of generating electricity from LNG as well as diesel.
Pakistan entered the EFF, a 39-month funding programme with the IMF in July 2019, but the release of tranches has faced delays due to issues over the required reforms.