FPCCI Chairman Blames IPPs for Economic Crisis, Demands Reform
Karachi: Mian Zahid Hussain, Chairman of the FPCCI Policy Advisory Board and National Business Group Pakistan, has accused Independent Power Producers (IPPs) of playing a fundamental role in the country's economic collapse.
In his statement, Hussain called on the government to purchase electricity from IPPs at rates comparable to those of state-owned power plants. He urged efforts to renegotiate contracts with IPPs, starting with those linked to friendly countries like China.
Hussain criticized the ongoing construction of new IPPs, arguing that they serve only a select few and not the nation. He warned that if the trend of building new private power plants continues, it could lead to national bankruptcy. He questioned the legality of payments ranging from 350 to 750 rupees per unit to various IPPs, labeling it as profiteering and theft.
He demanded transparency, questioning why billions are being paid for electricity from IPPs without actual production. Hussain also challenged the exorbitant capacity charges being paid without power generation and called for the public release of IPP contracts, arguing that they should not be kept secret.
Hussain highlighted the severe impact of high payments to IPPs on the government’s ability to invest in crucial sectors like health, education, and environment. He claimed that IPPs are exacerbating poverty, ignorance, disease, and environmental pollution in Pakistan.
He further criticized the disparity in electricity costs, alleging that electricity priced at 10 rupees per unit is being sold at 60 rupees, severely impacting the middle class. He called this a clear example of mismanagement.
Hussain concluded by suggesting that a comparative analysis of IPP agreements in Pakistan with those in other countries during the same period would reveal substantial corruption. He warned that if the public fails to address these issues, the country may face further economic collapse.
