KARACHI – Convener FPCCI Central Standing Committee on Insurance Dr. Murtaza Mughal on Tuesday said private power companies are bankrupting country for profits.
He said that the issue of Independent Power Producers (IPPs) merits the whole truth as it’s not only the businessmen who are making billions but bureaucracy and politicians are equally responsible for the mess.
Dr. Murtaza Mughal said that during 1994 the government decided to ignore state-run powerhouses and started inking deals with the private sector which led to massive losses to the economy.
There is not a single notable politician who has not remained part of the government or opposition during the last 25 years but they remained tight-lipped over the issue for obvious reasons, he added.
He noted that the considerable involvement of the private sector in power production started with the establishment of Hubco and it continues since then; the agreements with IPPs were finalised on such terms and conditions which helped many to recover the whole cost within 12 to 15 months which is amazing as no legal business can earn such handsomely.
Presently there are 42 IPPs working in the country while others with 3000 megawatt capacity are in different stages of completion which will bring more miseries to the masses due to costly electricity, he informed.
Murtaza Mughal said that a subsidy of Rs3500 billion has been given in the last thirteen years while Rs1600 billion have been spent on the circular debt but to no avail as it still stands at two trillion rupees.
He said that stabilisation of the economy, investment and any relief to the masses will remain a dream unless the power agreements are normalised and plunder in the name of the business is stopped.
