Karachi: Mehmood Ziauddin, Chairman of FPCCI’s Policy Advisory Board and the National Business Group Pakistan, has accused Independent Power Producers (IPPs) of playing a key role in the country’s economic downfall.
He urged the government to buy electricity from IPPs at rates similar to state power plants and to balance IPP contracts, starting with Chinese power plants.
He criticized the ongoing construction of new IPPs, suggesting that it threatens the country’s financial stability.
Ziauddin questioned the legality of paying IPPs between 350 to 750 rupees per unit and demanded an explanation for the exorbitant payments for electricity production without actual output.
Ziauddin argued that the substantial payments to IPPs are draining funds needed for health, education, and other essential sectors, exacerbating poverty, ignorance, disease, and environmental pollution.
He called for a review of IPP contracts to recover billions of rupees and alleviate the financial burden on the public.
He highlighted the disparity in electricity costs, stating that while electricity priced at 10 rupees per unit is sold at 60 rupees, it is harming the middle class and reflecting poor governance.
He suggested comparing Pakistan’s IPP contracts with those in other countries to reveal the extent of corruption and warned that if the public doesn’t address the issue, the country might face severe financial repercussions.