PESHAWAR: The Sarhad Chamber of Commerce and Industry (SCCI) has filed a writ petition in the Peshawar High Court, challenging the agreements with Independent Power Producers (IPPs). The petition calls for a forensic audit of all IPP contracts, aiming to address the issue of excessive payouts and bring relief to power consumers.
The plea opposes the renewal of existing IPP agreements and the signing of new contracts, urging the court to implement recommendations from the Senate Standing Committee on Power regarding the excess profits made by IPPs reliant on RFO (Residual Fuel Oil).
SCCI President Fuad Ishaq, speaking at a press conference alongside Vice President Ejaz Khan Afridi and other prominent business leaders, stated that these agreements are detrimental to Pakistan’s economy. He argued that IPPs are a significant obstacle to the country’s economic growth, contributing to stagnation in industries and business activities.
Highlighting the scale of the issue, Fuad revealed that Pakistan’s total installed electricity capacity is 45,000 megawatts, with hydel power contributing 11,000 megawatts, nuclear power 3,500 megawatts, and green energy sources 3,000 megawatts. He noted that the contracts with IPPs were unnecessary and primarily served the interests of select individuals, further claiming that the country had more power plants than needed.
Fuad emphasized that IPP profits, recorded at 36 to 45 percent, far exceeded the 15 to 17 percent agreed upon in their contracts. He urged the government to conduct a forensic audit and cancel the existing agreements to safeguard the future of Pakistan’s economy.
The press conference was attended by various SCCI officials and business leaders, all of whom echoed the need for urgent reforms in the power sector.
Story by Amjad Ali Shah
