FPCCI Acting President Demands IPP Contracts public
Karachi: Abdul Mueem, Acting President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has called for the disclosure of details regarding contracts with Independent Power Producers (IPPs).
Addressing a press conference in Karachi, Mueem revealed that IPPs are receiving monthly capacity payments amounting to 150 billion rupees. He highlighted that even non-operational plants and those running at only 10-15% capacity are being compensated. Mueem urged a forensic audit of all IPPs, suggesting that if corruption is found, Pakistan could seek international legal recourse. He noted that investigations have already revealed alarming levels of misconduct.
Mueem criticized the soaring cost of electricity, which he claimed is causing widespread business closures. He cited an example of an IPP that, initially costing 50 billion rupees to establish, has already received 400 billion rupees in payments. He warned that continued price hikes could lead to further industrial shutdowns.
He also proposed revising IPP contracts and transitioning imported coal plants to use local coal. Mueem emphasized that 52% of IPPs are government-owned while 20% are Chinese, and called for public disclosure of the terms of these contracts, including the historical context and conditions of their agreements.
Further criticizing the situation, Mueem accused IPP owners of exploiting the public, noting that many have sent their families abroad. He highlighted that payments to IPPs exceed the defense budget, with capacity charges totaling 2,600 billion rupees compared to a defense budget of 2,200 billion rupees.
