The Vice President and Regional Chairman of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Zaki Aijaz, expressed the nation's anticipation of the task force on Independent Power Producers (IPPs) and Pakistan's Power Sector Reforms to hold the 40 IPPs accountable and provide much-needed relief to the public.
In a statement released on Friday, Aijaz highlighted the growing concern among the public and business community over the rising cost of electricity. He stressed that the expensive power purchase contracts with IPPs are unacceptable, making it impossible for industries to operate under such high tariffs.
He also criticised the government for paying enormous sums to certain IPPs that are either non-operational or underutilised. According to Aijaz, these IPPs have invested only Rs50 billion but have received Rs400 billion from the government, transferring this financial burden onto the public.
The FPCCI regional chief pointed out that some power plants did not supply any electricity from January to March, yet the government paid them billions each month. He lamented that electricity costs have become unaffordable, with 25% of the industry already shut down due to the high tariffs.
Aijaz concluded that the government extracts Rs2,000 billion annually from the public through capacity charges, creating an unsustainable environment for industry and exacerbating the economic crisis.
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