KARACHI(22-07-2024) Former Vice President of the Federation of Pakistan Chambers of Commerce and Industry(FPCCI), Zahid Iqbal Chaudhry, has stated that the agreements made to benefit 40 independent power producer companies have brought the national economy, industry, trade, and the 240 million Pakistani people to the brink of economic disaster. The cancellation of agreements with IPPs is the foremost demand of the current critical situation. Agreements with rental power plants were hastily made without considering the national interest. An advance payment of over 6 billion rupees was given to the owners of these rental power plants, and now a thousand crore rupees are being paid to these closed plants.
According to details, during a conversation with media representatives, former Vice President of FPCCI Zahid Iqbal Chaudhry demanded an immediate audit of power companies due to the alarming increase in electricity bills caused by the power companies’ arbitrary actions. He urged the government to review the agreements with IPPs. If the current situation persists, the national economy will soon reach the point of no return. If electricity rates are not reduced, the national situation will deteriorate.
Zahid Iqbal Chaudhry emphasized that political stability is the most urgent and significant need of the hour to improve Pakistan’s economy. All stakeholders, especially the Government of Pakistan, need to take this issue seriously to address the economic challenges. He mentioned that the relentless increase in electricity bills is causing distress not only to the public but also to the business and industrial community. He termed the capacity charges on industries as a sheer injustice and expressed regret that the IPPs have not been audited, which is a matter of concern. The entire business community of Pakistan demands that the government reassess the agreements with IPPs.
He questioned whether the plants established in Pakistan are actually needed and stressed the necessity for the government to upgrade the transmission lines. He pointed out that 2.3 trillion rupees are being extracted from our and the public’s pockets under the head of capacity charges. He affirmed that with the current electricity tariffs, our economy cannot progress. A sluggish economy will hinder the government from achieving its targets. Zahid Iqbal Chaudhry highlighted that many issues have emerged post-budget, making it difficult for businesses to operate. Taxpayers have been burdened further, and there is no clear understanding of the taxation system. Every segment of society is troubled, and no consultations were held. The government has formulated the budget solely based on IMF conditions, and it will be evident in three months where the economy is heading. Three months later, we will reach the point of no return. Our capacity is 46,000 MW, and the demand is 26,000 MW. The government can eliminate taxation from electricity bills. The entire burden has been placed on the salaried class, the business community, and the public. If electricity rates do not decrease, the situation will worsen.
