The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has called for disclosing agreements with Independent Power Producers (IPPs), citing significant financial concerns.
According to FPCCI, one IPP established for 50 billion rupees has already received payments of 400 billion rupees.
During a press conference in Karachi, FPCCI’s Acting President, Abdul Mueem, highlighted that IPPs receive monthly payments of 150 billion rupees under capacity charges. He pointed out that the payments go to plants operating at only 10-15% capacity and non-operational plants.
Mueem emphasized that the skyrocketing cost of electricity has led to widespread shutdowns of businesses and industries across the country. He warned that if electricity prices continue to rise, more industries will have to shut down. He urged a comprehensive audit of all IPPs and suggested that Pakistan should seek redress from international courts if corruption surfaces.
The Acting President of FPCCI also noted that while the country’s defence budget is 2200 billion rupees, the capacity charges have escalated to 2600 billion rupees. He expressed concern that IPP owners have sent their children abroad, indicating they are preparing for a worsening situation. Additionally, he revealed that 52% of IPPs are government-owned, and China owns 20%. He stressed the importance of publicizing the details of these agreements and called for a thorough review of the contracts.
