KARACHI: Welcoming the agreement between the government and independent power producers (IPPs) for lowering generation costs, President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Mian Anjum Nisar on Thursday also called for forensic audit of these firms to save industries.
He further sought impeachment of those who were responsible without any discrimination in the larger national interest.
While urging for bringing down power and gas tariffs for domestic as well as export sectors at par with regional and neighbouring countries, he said industries in Pakistan pay around Rs24 per unit for electricity as compared to about 7.5cents per unit in regional countries.
There is still a room for slashing power generation cost further for ensuring ease of doing business, keeping in view the global trend of power producers.
Anjum said several sensitive issues have not been touched yet and benefit was given to the power producers against the industry, domestic consumers, small and medium enterprises and the agriculture sector.
He proposed that the next target should be reforms in distribution companies to further reduce cost of production which is very high due to high gas and power tariffs, expensive fuel and continued weakening of the rupee against the dollar along with rising import duties.
The FPCCI chief said a huge rise in energy tariffs is due to excessive capacity payments to IPPs in dollars, leading to further addition in public debt of the government which was ultimately passed on to the consumers through Nepra in the form of hike in fuel surcharges.
He attributed rising circular debt to sovereign guarantees of rate of return to IPPs in terms of dollars and not rupees while continued depreciation of local currency against the dollar in the past also amounted to losses in millions.
After an agreement with the IPPs, the government should also put power sector reforms on top priority for a quick yield of economic gains, he urged.
