Karachi Pakistan : The United Business Group (UBG) has expressed deep concern and anxiety over the exorbitant
electric charges imposed by Independent Power Producers (IPPs), which are crippling industries and
threatening the survival of businesses in Pakistan.
At the Core Committee Meeting of UBG, chaired by Khalid Tawab, Chairman of the Southern Zone,
and attended by S. M. Tanveer, Patron-in-Chief, Zubair Tufail, Hanif Gohar, Syed Mazher Ali Nasir,
Eng. Daroo Khan, Mumtaz Ali Sheikh, Abdul Sami Khan, Dr. Mirza Ikhtiar Baig, Senator Abdul Haseeb
Khan, Tariq Haleem, Gulzar Firoze, Ahmed Chinoy and other members lamented the hard economic
situation created by IPPs’ exorbitant billings. They appealed to the government to revisit the
agreements with IPPs, reduce electric tariffs, and help industries and exporters survive.
The members criticized IPPs for being anti-business friendly, as the government pays Rs. 2 Trillion to
those IPPs who are not operating, on account of capacity charges. This forces consumers to bear the
negative impact, while industries pay Rs. 24 per unit against NEPRA’s Rs. 8 per unit.
Khalid Tawab warned that the existing industries and businesses are closing down, and foreign direct
investment is unlikely. The current exorbitant electric charges are rendering industries
uncompetitive, causing huge unemployment, and investors are considering exiting Pakistan.
He emphasized that the revised tax collection target of Rs. 12.9 Trillion is impossible under the
present economic situation. The export target of $100 billion by 2030 is also next to impossible, as
existing exports are likely to fall substantially, benefiting neighboring countries with lower power
tariffs.
Hanif Gohar, Secretary General of the United Business Group (UBG), stated that Pakistani
businessmen are facing unprecedented economic challenges due to the crippling crisis created by
Independent Power Producers (IPPs). This crisis is having far-reaching impacts on all sectors of the
economy, forcing investors to seek opportunities abroad and exit the Pakistani market.
The leaders and members stressed that industries can survive with a power tariff of maximum 9
cents. They urged the government to renegotiate with IPPs to reduce tariffs before it’s too late,
warning that failure to do so may result in the closer of industries.
ADVERTISEMENT
