BR100 Increased By (0.01%)
BR30 Increased By (0.53%)
KSE100 Increased By (0.28%)
KSE30 Increased By (0.29%)
AGHA 6.38 Increased By ▲ 0.06 (0.95%)
BECO 4.35 Increased By ▲ 0.08 (1.87%)
BML 62.55 Increased By ▲ 0.10 (0.16%)
BOP 31.39 Increased By ▲ 0.16 (0.51%)
CNERGY 11.73 Increased By ▲ 0.14 (1.21%)
CSIL 5.91 Increased By ▲ 0.19 (3.32%)
FCCL 61.71 Increased By ▲ 0.17 (0.28%)
FFL 14.79 Decreased By ▼ -0.23 (-1.53%)
FNEL 1.24 Increased By ▲ 0.01 (0.81%)
KEL 6.32 Increased By ▲ 0.06 (0.96%)
KOSM 5.90 Increased By ▲ 0.34 (6.12%)
LOTCHEM 24.69 Increased By ▲ 0.01 (0.04%)
MLCF 103.93 Decreased By ▼ -0.15 (-0.14%)
NBP 173.32 Decreased By ▼ -1.96 (-1.12%)
NCPL 51.83 Decreased By ▼ -0.94 (-1.78%)
NPL 54.03 Decreased By ▼ -0.09 (-0.17%)
OGDC 315.87 Increased By ▲ 2.48 (0.79%)
PACE 9.26 Increased By ▲ 0.06 (0.65%)
PAEL 35.58 Decreased By ▼ -0.22 (-0.61%)
PIBTL 13.66 Increased By ▲ 0.19 (1.41%)
PPL 226.07 Increased By ▲ 4.26 (1.92%)
PRL 80.28 Increased By ▲ 1.20 (1.52%)
PTC 46.64 Decreased By ▼ -0.21 (-0.45%)
SSGC 23.82 Decreased By ▼ -0.05 (-0.21%)
TBL 9.24 Decreased By ▼ -0.07 (-0.75%)
TELE 7.55 Increased By ▲ 0.16 (2.17%)
TPL 24.54 Decreased By ▼ -0.57 (-2.27%)
TPLP 12.99 Increased By ▲ 0.48 (3.84%)
TREET 25.98 Decreased By ▼ -0.27 (-1.03%)
TRG 53.33 Decreased By ▼ -0.11 (-0.21%)

KARACHI: Syed Mazhar Ali Nasir, former Senior Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has strongly criticised the agreements with Independent Power Projects (IPPs) for pushing Pakistan’s economy to the brink of collapse.

Mazhar Nasir emphasised the urgent need for a review of these agreements, which have led to exorbitant payments to IPPs, resulting in substantial losses for the industrial sector, unemployment and a significant fall in exports.

He highlighted that despite a significant increase in electricity generation from IPPs, the consumption remains low due to an outdated electricity system, yet Pakistan pays a whopping 2000 billion rupees in capacity surcharge.

The former FPCCI SVP expressed concern over the unsustainable revolving loans of the power sector, which have reached 2655 billion rupees, posing a significant financial risk to the economy. He also pointed out that electric charges in Pakistan have skyrocketed to 17 cents per kilowatt, compared to 6 cents in India, 8.6 cents in Bangladesh, and 7.2 cents in Vietnam.

Mazhar Nasir urged the government to renew the terms of IPP contracts, conduct a forensic audit of all IPPs, and made recovery from non-functional IPPs involved in invoicing.

He lamented that expensive electricity has forced industries to shut down, leading to unemployment and losses, while coal-fired power plants remain closed for two years, yet the government continues to pay them 60% of the capacity charge, exacerbating the revolving debt.

Mazher Nasir further added that the revolving credit of Independent Power Producers (IPPs) has become unsustainable and poses a significant financial risk to the economy. In just two months, electricity rates have skyrocketed to Rs 76 per kilowatt-hour, which is unsustainable.

Copyright Business Recorder, 2024

Comments

Comments are closed for this article.