Karachi: Acting President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Abdul Mueed has called for the details of contracts with Independent Power Producers (IPPs) to be made public.
In a press conference in Karachi, Abdul Mueed stated that IPPs are receiving monthly capacity payments of 150 billion rupees, including payments to idle plants and those running at 10-15% capacity.
He suggested conducting a forensic audit of all IPPs, and if corruption is found, Pakistan could approach international courts.
He noted that the more investigation into IPPs, the more shocking the revelations.
He highlighted the severe increase in electricity prices, leading to the closure of businesses and industries.
For instance, a single IPP, which cost 50 billion rupees to set up, has already received 400 billion rupees.
He warned that if electricity prices continue to rise, industries will shut down.
Abdul Mueed urged for a review of IPP contracts and suggested shifting from imported coal to local coal.
He pointed out that 52% of IPPs are government-owned and 20% are Chinese.
He stressed that the details of IPP contracts should be made public to show the terms and conditions under which they were signed.
He also mentioned that payments to IPPs exceed the defense budget, with capacity charges amounting to 2600 billion rupees compared to a defense budget of 2200 billion rupees.