Danish A. Malik, President of the Surjani Association of Trade & Industry Karachi (SATI), and executive committee members have demanded that the government terminate contracts with Independent Power Producers (IPPs) promptly.

During an emergency meeting, SATI passed a resolution urging the government to act swiftly on terminating IPP contracts. They emphasised the critical need to address the demands of the business community to safeguard the country’s industries, prevent widespread unemployment, and alleviate serious economic crises. SATI also stressed formulating policies to promote industrial production activities and encourage the establishment of new industrial units.

The resolution highlighted the dire consequences of escalating electricity rates due to IPP capacity charges, making it increasingly difficult for industries to sustain operations. The high costs of electricity and gas have significantly inflated production expenses, leading to the closure of numerous industries and threatening the national economy, particularly exports.

Furthermore, SATI underscored that protecting the interests of 240 million people and the economy outweighs preserving the interests of 40 IPPs. They urged the government to review agreements with IPPs to prevent further economic downturns.

In the resolution, President SATI and executive committee members also appealed for reduced electricity rates as a crucial step to lower production costs and enhance the competitiveness of industries in global markets. Failure to heed these demands, they warned, could result in the destruction of industries and a surge in unemployment.