The President of the Korangi Association of Trade and Industry (KATI), Junaid Naqi, has welcomed the federal government’s decision to terminate agreements with five inactive Independent Power Producers (IPPs). He stated that reviewing all IPP agreements is crucial for achieving economic stability in the country.
Junaid Naqi highlighted that KATI, under the leadership of Patron-in-Chief S.M. Tanveer, was the first to raise concerns about these IPPs, which were becoming a burden on the national treasury. He expressed satisfaction with the success of KATI’s campaign and said it strengthened their resolve to continue serving the business community.
Naqi further pointed out that the inactive IPPs were collecting billions of rupees annually despite not producing or supplying electricity, calling it an outright injustice. He also mentioned that agreements with 107 other Independent Power Producers are currently under review, with hopes for transparent and fair decisions.
While praising the efforts of former caretaker Commerce Minister Gohar Ejaz, head of the IPP Task Force Muhammad Ali, and senior officials in the establishment, Naqi said their hard work has paved the way for reforms. He emphasized that going forward, payments will only be made for electricity that is actually produced and supplied to consumers, which will reduce the country’s financial burden.
The KATI president also remarked that the successful renegotiation of IPP contracts is a significant step towards addressing the challenges in Pakistan’s energy sector and ensuring a more sustainable future for the nation.