Zahid Iqbal Chaudhry, a former vice president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has urged the government to reassess and restructure the contracts with Independent Power Producers (IPPs) to better align payments with actual electricity production and demand.
During a roundtable conference on Sunday titled “Impact of High Power Tariffs and Large Payments to IPPs on the Economy,” Chaudhry highlighted the need to renegotiate these agreements to address the issue of high electricity tariffs, which he identified as a significant barrier to economic growth.
He emphasized that high electricity costs are not only a burden for businesses but also exacerbate financial difficulties for domestic consumers, leading to widespread dissatisfaction and social unrest.
Chaudhry advocated for the implementation of more efficient energy policies, the promotion of renewable energy sources, and investment in energy infrastructure to decrease dependence on expensive IPPs.
Addressing this matter is essential for creating a business-friendly environment, ensuring affordable electricity for everyone, and promoting sustainable economic development, he added.
The senior United Business Group leader noted that capacity charges have imposed severe financial strains on the country, inflating electricity costs and making it challenging for people and businesses to afford.