- Ex-caretaker PM underscores the need for a viable solution to the simmering issue instead of point-scoring
- Speakers at the business conference say the country cannot run with such IPP agreements
LAHORE: Former caretaker prime minister Anwarul Haq Kakar said that the Independent Power Producers (IPPs) issue is the problem of the entire nation alongside the business community, underscoring the need for a viable solution to the simmering issue instead of point scoring.
Addressing a business conference organized by the Federation of Pakistan Chambers of Conference and Industry (FPPCI) in Lahore as President of FPCCI’s Economic Policy Business Development Think Tank, Kakar said that the issue of IPPs had been discussed in the Senate, reiterating, “We fought for people’s rights before, will fight this battle too and those spreading despair about the country’s future on social media should know that the country’s future is bright.”
Former caretaker federal minister for commerce and interior Dr Gohar Ejaz, who also holds the portfolio of Chairman of FPCCI’s Economic Policy Business Development Think Tank, said that the government’s negligence towards IPPs was being borne by the people, emphasizing that an audit of IPPs should be conducted.
“The entire nation clamouring for cure for the wounds and agony inflicted by the IPPs and we need to find a solution to end the IPPs agreements”, he stressed. “We never want our country to face any crisis but the policies should be devised to move Pakistan forward. There was electricity, but the problem was the cost of electricity. How can we compete with the world with expensive electricity,” he questioned.
Meanwhile, former interim federal minister Dr Gohar Ejaz announced his decision to approach the Supreme Court against IPPs (Independent Power Producers).
In a message posted on the social media platform X, Gohar Ejaz stated that on behalf of the nation, a lawsuit will be filed in the Supreme Court against the owners of 40 IPPs.
We are moving to Supreme Court 240 million People of Pakistan vs 40 IPP owners.May Allah SWT Bless us with Success Inshallah.
ہم قوم کی جانب سے 40 آئی پی پیز کے مالکان کے خلاف سپریم کورٹ میں مقدمہ دائر کرنے جا رہے ہیں۔ دعا ہے کہ اللہ تعالی ہمیں اس کوشش میں کامیابی عطا فرمائے اور…— Dr Gohar Ejaz (@Gohar_Ejaz1) July 27, 2024
He expressed his hope, saying, “I pray that Allah grants us success in this endeavor and assists us in obtaining justice.”
It is noteworthy that on July 20, former interim Minister of Commerce Gohar Ejaz mentioned that a hefty payment of 450 billion rupees was made to IPPs in the first three months of this year (January to March).
Gohar Ejaz revealed that various IPPs were paid 150 billion rupees monthly from January to March 2024.
Private sector IPPs are operating at an average capacity of 36% yet charge Rs 26.87 per unit in capacity charges. Ideally, these charges should be around Rs 8 per unit. This results in an annual overpayment of Rs 700 billion. If IPPs were compensated based on actual electricity… pic.twitter.com/KqpEhIoy1h
— Dr Gohar Ejaz (@Gohar_Ejaz1) July 27, 2024
Speaking business conference organized by the FPCCI, UBG Chairman SM Tanveer said that they will approach the Supreme Court and SIFC to explain the real issue as well as the satisfactory solution to pull the country out of the existing economic mess.
FPCCI President Atif Ikram Sheikh said that Anwarul Haq Kakar’s business friendly policies will definitely bear fruit and will enhance the prestige of the fraternity.
UBG Secretary General Zafar Bakhtawari said that the issue of IPPs and the existing crisis were linked with the future of Pakistan, adding that the country was in emergency situation and the leadership will have to take aggressive decisions to come out of the existing economic crunch.
Former FPCCI SVP Shaikh Khalid Tawab and senior UBG leader Riaz ud Din Shaikh also highlighted the business community’s difficulties vis-à-vis ease of doing business, impressing upon the government to resolve the grievances on urgent basis for the economic betterment of the country.
Earlier, during the conference business community demonstrated its unity against the agreements with Independent Power Producers and called for dialogue and policy changes to address the ‘unbearable’ electricity costs.
Due to wrong agreements, capacity charges have to be paid, and electricity prices were currently Pakistan’s biggest problem. Annual capacity charges of Rs2,000 billion are being taken from the pockets of 240 million people, and 25% of industries have already closed down. The country cannot run with such IPP agreements.
