Pakistan’s powerful security services used heavy pressure to coerce five local utility companies to end electricity supply contracts with the government early, according to people familiar with the talks.
Pakistan’s power ministry has said agreements that were announced on Thursday to end the contracts will save the cash-strapped government Rs411bn ($1.48bn) and help it cut electricity prices for households and businesses.
Prime Minister Shehbaz Sharif’s office said the power companies had “prioritised national interest over personal interest” and “voluntarily agreed” to the terminate their contracts.
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