Abdul Mohamin, the acting president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), demanded that details of the agreements with Independent Power Producers (IPPs) be made public.
During a press conference on Monday, Mohamin highlighted that IPPs receive monthly capacity payments of Rs 150 billion, including payments to non-operational and partially operational units.
He called for a forensic audit of all IPPs, stating, “If irregularities are found, Pakistan can appeal through international courts.”
Mohamin noted that the cost of electricity has become exorbitant, leading to widespread shutdowns of businesses and industries.
“An IPP set up for Rs 50 billion has received payments totaling Rs 400 billion. The situation has become unsustainable; if electricity prices continue to rise, industries will be forced to close,” he noted.
He called for a review of the agreements with the PPAs, suggesting that units using imported coal should switch to local coal.
According to Mohamin, 52% of IPPs are state-owned and 20% are owned by China. He demanded transparency in the terms and conditions of these agreements, urging review and renegotiation where necessary.
“The details of the deals should be made public, including which deals were made in what periods and under what conditions,” he said.
Mohamin further accused the IPP owners of exploiting the public, claiming that “the IPP owners have sent their children abroad in anticipation of the worsening of the situation”.
He pointed out that payments to IPPs exceed the national defense budget, stating, “The defense budget is Rs 2,200 billion, while capacity charges are Rs 2,600 billion.”
Yesterday, former acting Commerce and Industries Minister Dr Gohar Ejaz, citing National Electricity Regulatory Authority (NEPRA) data said that at least four power plants receiving Rs 10 billion per month are running without providing any electricity.
In a post shared on X (formerly Twitter) on Sunday, Ejaz referred to NEPRA data from January to March this year and highlighted how a significant portion of the country’s energy budget is being misallocated.
During this period, NEPRA made monthly capacity payments of Rs 150 billion to various Independent Power Producers.
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