Recent revelations from an annual report have highlighted that five major Independent Power Producers (IPPs) received substantial tax-free payments despite operating at reduced capacities. According to the report:
- Engro Power received Rs. 74 billion while operating at only 54% capacity.
- Hub Power was paid Rs. 260 billion for functioning at just 16% capacity.
- Lucky Group received Rs. 62 billion at 28% capacity.
- Mian Mansha’s powerhouse, operating at 13% capacity, was paid Rs. 25.6 billion annually.
- Sapphire Powerhouse received Rs. 34 billion for 34% capacity performance.
The Ministry of Energy confirmed that existing contracts made these payments and that auditors oversee these transactions. These payments are issued annually, and the ministry assures that any discrepancies will be addressed.
Read: Former Commerce Minister Dr. Gohar Ejaz Exposes Flaws in IPP Payment System
Energy expert Anjum Nadeem criticized the agreements with these IPPs as perilous, likening their impact to that of historical contracts by the East India Company. He emphasized revising these agreements to halt what he viewed as public exploitation.
Nadeem expressed astonishment at the lack of tax obligations on payments amounting to Rs. 560 billion to these IPPs, highlighting the stark contrast with the heavy electricity bills burdening the common man and industries.
