Abdul Mohamin, acting president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has called for full disclosure regarding agreements with Independent Power Producers (IPPs), amidst revelations that an IPP originally built for Rs50 billion has received payments totaling Rs400 billion.
During a press conference on Monday, Mohamin underscored that IPPs are currently receiving staggering monthly capacity payments amounting to Rs150 billion. This includes payments to both non-operational and partially operational plants, contributing to what he described as exorbitant electricity costs that are crippling businesses and industries across Pakistan.
Mohamin emphasized the urgency of conducting a forensic audit across all IPPs, suggesting that any irregularities discovered should be pursued through international legal channels.
“The situation has become unsustainable,” Mohamin warned, expressing concern that continued increases in electricity prices could force widespread industrial shutdowns.
He further advocated for a review of IPP agreements, proposing a transition for plants currently using imported coal to utilize local coal resources. Mohamin highlighted that a significant portion of IPPs in Pakistan are government-owned (52%) or Chinese-owned (20%), and called for increased transparency in their contractual terms and conditions.
“The terms of these agreements, including their timelines and conditions, must be made publicly available,” Mohamin insisted.
Citing alarming statistics, Mohamin noted that payments to IPPs now surpass the national defense budget, a point he stressed to underscore the scale of financial commitments involved.
Meanwhile, former caretaker minister for Commerce and Industries Dr. Gohar Ejaz, referencing National Electric Power Regulatory Authority (NEPRA) data, recently highlighted that several power plants are receiving substantial monthly payments despite not supplying any electricity at all.
In a statement shared on social media, Ejaz pointed to NEPRA data showing monthly capacity payments totaling Rs150 billion from January to March of this year alone, raising concerns about the efficient allocation of Pakistan’s energy budget.
The FPCCI’s demand for transparency and accountability in IPP payments comes amid growing public scrutiny and calls for reform within Pakistan’s energy sector.
