Prime Minister Shehbaz Sharif has announced the termination of contracts with five Independent Power Producers (IPPs) saying this will lead to reduction in the prices of electricity.

Chairing the federal cabinet meeting in Islamabad today, he said this has been done after the mutual consent of the owners of the IPPs.

The Prime Minister informed the Cabinet that only the outstanding amounts owed to these IPPs will be paid, without any interest.

He highlighted that termination of these contracts will save power consumers about sixty billion rupees and provide a benefit of around four hundred and eleven billion rupees to the national exchequer.

Shehbaz Sharif said it was the outcome of the strenuous collective efforts of the entire government's team. He also recognized the inputs and support of the allied parties in this regard. He especially mentioned Chief of Army Staff General Asim Munir, who took personal interest in the whole matter.

The Prime Minister described the development as a beginning of a journey which, he said, will be converted into progress and prosperity of the people.

Shehbaz Sharif also mentioned the relief provided by both the Federal and Punjab governments to the power consumers during the months of summer.

The Prime Minister expressed satisfaction that the economy is gradually heading towards stability. He pointed out that the remittances for the first quarter touched the record level of 8.8 billion dollars. This, he said, is a confidence that Pakistan's economy is moving forward.

Shehbaz Sharif said the government also took measures to bring down the inflation which has now come down to a single digit. He said this is the fulfillment of the promise made by the PML-N in the election manifesto.