Saleem Memon, President of the Hyderabad Chamber of Small Traders and Small Industry (HCSTSI), has hailed the Government of Pakistan’s decision to cancel and revise the agreements with Independent Power Producers (IPPs) as a historic, courageous, and nationally beneficial move. He said this decision has resulted in a saving of approximately Rs. 3,600 billion, which holds extraordinary significance for the national economy.
He stated that the Hyderabad Chamber of Small Traders and Small Industry was the first to raise this issue at the national level in 2022. At that time, the Chamber had clearly highlighted that the imbalanced and expensive IPP agreements were a heavy burden on Pakistan’s economy, making it increasingly difficult for industries, businesses, and citizens to bear the costs. He added that since then, HCSTSI has consistently raised this matter on every available platform, urging the government to address this challenge.
He expressed satisfaction that today, other chambers and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) have also endorsed the same stance, and finally, the government has taken practical action to safeguard the country’s economic interests.
President Memon further stated that by revising or canceling these costly IPP contracts, the government has not only achieved a savings of Rs. 3,600 billion but has also reduced the financial burden by nearly 30 to 35 percent annually. This, he noted, will contribute to stabilizing electricity tariffs, reducing industrial costs, and improving national fiscal discipline. He emphasized that if all such unfair and economically damaging agreements are terminated, Pakistan’s economy will witness long-term positive outcomes, including a reduction in power generation costs, improvement in foreign exchange reserves, and a decline in fiscal deficits.
Mr. Memon pointed out that both industrial and domestic consumers are rapidly shifting towards solar energy, and the future clearly belongs to alternative energy sources such as solar, wind, and hydropower. In this context, IPP contracts based on high capacity payments have become nothing but a heavy economic liability for the country. He stressed that revising or terminating such agreements is not only essential but also a decisive step toward achieving economic self-reliance.
He expressed hope that the government will continue this proactive approach and review other financial and industrial policies in the same spirit to ensure that Pakistani industries gain access to low-cost, sustainable energy sources. Such measures, he said, will boost exports, attract investment, and create new employment opportunities.
In conclusion, President Saleem Memon praised the Prime Minister of Pakistan, the Federal Minister for Energy, and all relevant institutions for taking this bold and visionary decision, calling it a bright beginning toward Pakistan’s economic recovery and self-sufficiency.
