ISLAMABAD (PEN) : Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has called for an urgent review of agreements with Independent Power Producers (IPPs), warning that without a reduction in electricity prices, industries in the country could face shutdowns.
Sheikh highlighted that the government should disclose the terms of these agreements, which he claims are contributing to high electricity costs in Pakistan. He pointed out that the country is paying Rs. 150 billion monthly to IPPs that are generating less electricity than expected.
Sheikh noted the troubling rise in circular debt within the power sector while the public endures the burden of expensive electricity. He criticized the fact that some IPPs are operating at less than 10% capacity but still receiving full payments. This, he argues, is making life increasingly difficult for ordinary citizens and businesses due to the high cost of electricity.
Sheikh emphasized that electricity prices in Pakistan are significantly higher compared to neighboring countries, adding that if costs are not reduced, the country’s industries may be forced to shut down. He has also called for a forensic audit of the IPPs to address these issues and find a path forward.
