Karachi: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has called for public disclosure of details related to agreements with Independent Power Producers (IPPs).

Abdul Mohamin, acting President Federation at press conference highlighted that IPPs are receiving monthly capacity payments amounting to Rs 150 billion including payments to non-operational and partially operational plants. He urged for forensic audit of all IPPs, stating, “If any irregularities are found, Pakistan can seek recourse through international courts.” Mohamin noted that electricity costs have become exorbitant, leading to widespread business and industrial shutdowns. “An IPP established for Rs 50 billion has received payments totalling Rs 400 billion. Situation has become unsustainable; if electricity prices continue to rise, industries will be forced to shut down,” he noted. He called for review of agreements with IPPs, suggesting that plants using imported coal should switch to local coal. According to Mohamin, 52 percent of IPPs are government-owned and 20 percent are Chinese-owned. He demanded transparency in terms and conditions of these agreements, urging for review and renegotiation where necessary.

“Details of agreements should be made public, including which agreements were made during which periods and under what conditions,” he said. He accused IPP owners of exploiting public, alleging, “IPP owners have sent their children abroad in anticipation of situation’s deterioration.” He highlighted that payments to IPPs exceed national defence budget, stating, “Defence budget is Rs 2,200 billion, while capacity charges are Rs 2,600 billion.”