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Consumers Association Calls for IPP Agreement Termination and Consumer Relief in Federal Budget

CAP Urges Government to Cut Electricity Costs, Promote Solar Energy, and Strengthen Consumer Protection Measures

Irfan Shaikh by Irfan Shaikh
June 2, 2026
Consumers Association Calls for IPP Agreement Termination and Consumer Relief in Federal Budget
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KARACHI: The Consumers Association of Pakistan (CAP) has called on the federal government to introduce strong consumer-focused measures in the upcoming Federal Budget 2026-27, aimed at reducing the burden of inflation, high electricity bills, and rising food prices.

Imran Ghaznavi Appointed Chief Media Officer and Principal Spokesperson at Privatization Commission

Addressing a press conference in Karachi, CAP Chairman Kaukab Iqbal urged policymakers to prioritize consumer welfare and adopt practical measures that directly benefit households across the country.

CAP Calls for End to IPP Agreements

Kaukab Iqbal said all agreements with Independent Power Producers (IPPs) should be permanently terminated, arguing that these arrangements have become a major financial burden on both consumers and the national economy.

He stated that capacity payments and existing power sector policies have contributed significantly to rising electricity costs, resulting in higher utility bills for consumers nationwide.

According to CAP, reforms in the energy sector are essential to reduce electricity prices and provide long-term relief to households and businesses.

Greater Focus on Solar Energy

The CAP chairman emphasized that expanding solar energy adoption offers a sustainable solution to both electricity shortages and rising power costs.

He urged the government to introduce tax exemptions, subsidies, and interest-free financing facilities for domestic and industrial consumers willing to install solar systems.

Furthermore, he called for national-level incentives to encourage self-generation of electricity and reduce dependence on costly conventional power sources.

Relief Sought on Essential Consumer Goods

CAP also urged the government to extend Sixth Schedule relief measures to a wider range of essential consumer products.

The association recommended including dairy products, frozen foods, infant formula, biscuits, cooking oil, ghee, and other daily-use items in relief measures designed to lower consumer costs.

Kaukab Iqbal said such steps would help ease the financial pressure on middle-income and low-income families struggling with inflation.

Demand for Mandatory Price Printing

The association called for stricter regulations requiring manufacturers, importers, and distributors to clearly print retail prices on all packaged consumer goods.

According to CAP, transparent pricing would help curb overcharging, improve market accountability, and protect consumers from unfair business practices.

Iqbal stressed that displaying prices on products is a fundamental consumer right and an important tool for preventing profiteering.

Call for Stronger Market Oversight

In addition to pricing reforms, CAP urged authorities to strengthen monitoring and enforcement mechanisms to ensure compliance with consumer protection laws.

The association said effective oversight is necessary to improve transparency in markets and safeguard consumers from exploitation.

Appeal to Government

Kaukab Iqbal appealed to the Prime Minister, Federal Finance Minister, Ministry of Energy, Federal Board of Revenue (FBR), and other relevant institutions to place consumer welfare at the center of the upcoming budget.

He reiterated that the Consumers Association of Pakistan would continue advocating for affordable electricity, fair pricing, food safety, quality products, and stronger consumer rights protections across the country.

Irfan Shaikh

Irfan Shaikh

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