Mr. Abdul Mohamin Khan, Acting President of FPCCI, has informed that, on behalf of the entire business, industry, and trade community of Pakistan, FPCCI will urgently plead the case of unbearable capacity charges of IPPs to the apex forums of the Supreme Court of Pakistan (SCP) and Special Investment Facilitation Council (SIFC) as the last resort to save the economy and the people of Pakistan.
Mr Abdul Mohamin Khan, Acting President of FPCCI, highlighted that despite repeatedly and unrelentingly expressing its concerns and apprehensions—loud and clear—regarding IPPs’ capacity charges, the business community is still not being taken on board for the consultative process to resolve the issue as soon as possible, despite being the primary stakeholder of the issue.
Acting FPCCI Chief presented the charter of demands vis-à-vis power sector: (i) forensic audit of independent power producers (IPPs) should be ordered, (ii) capacity charges of IPPs should be abolished, and only generated electricity should be paid, (iii) power purchase agreements with IPPs should be renegotiated fairly and transparently.
Mr Abdul Mohamin Khan, Acting President of FPCCI, maintained that the country had paid the capacity charges of approximately PKR. Two thousand billion in FY24; the same will further steeply rise to PKR. 2,700 – 2,800 billion in the FY25.
Mr. Abdul Mohamin Khan elaborated that guarantees to IPPs indexed to the US dollar mean any depreciation of the Pakistani rupee increases returns for IPPs – adding a significant and debilitating financial burden on the government and the public, a burden we all must acknowledge and work to alleviate.
FPCCI demands a comprehensive review of IPP agreements, price re-evaluation within legal bounds, and improved oversight to prevent over-invoicing. The energy infrastructure must also be examined for clauses related to misinformation and fraud. Mr Abdul Mohamin Khan proposed that the federal government devise a strategy to deal with IPPs and ensure affordable electricity prices for the industry in the national interest, a strategy that must be based on transparency and fairness.
