S M Tanveer congratulates businessmen for major breakthrough in unjustified contracts with IPPs

LAHORE: Patron-in-Chief Federation of Pakistan Chambers of Commerce and Industry (FPCCI-UBG) has congratulated the business community for a major breakthrough in their efforts against unjustified contracts with Independent Power Producer (IPPs), saying that first five IPPs have agreed to on close their contracts.

This all happened due to the tireless advocacy by the FPCCI leadership, including Group Leader of the business community Dr Gohar Ejaz, he added.

He said this achievement marks a significant step forward in addressing the long-standing concerns surrounding IPP contracts. For years, he added, these contracts have guaranteed IPPs trillion of rupees annually in capacity charges, despite minimal electricity production.

He assured the business community that the revised contracts will operate on a “take and pay” basis and payments would be tied to actual electricity production and supply, reducing the financial burden on the country.

Tanveer extended his gratitude to Prime Minister Shehbaz Sharif, the Task Force on IPPs, led by SAPM Mohammad Ali and Special Investment Facilitation Council (SIFC) for their unwavering commitment to Pakistan’s economic and social sustainability. Their efforts have paved the way for a more efficient and sustainable energy sector, he said.

While listing down benefits of IPP contract renegotiations, he said it would reduce Financial Burden, lower electricity costs for domestic, commercial, industrial, and agricultural consumers, increased efficiency and bring in economic growth.

He said the FPCCI has been vocal about the need for IPP contract reforms, calling for reviewing and amending existing agreements to protect the national economy and businesses. Today’s milestone is a testament to the power of collective effort and advocacy, he added.

He said the FPCCI looks forward to continued collaboration with the government and stakeholders to ensure the electricity tariff is reduced, making industries and commercial activities thrive.