Industrialists urge Govt to renegotiate contracts with IPPs
Govt urged to prevent SMEs from closure: FBATI President
July 14, 2024
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July 31, 2024
Industrialists urged the federal government to renegotiate the power tariff in the given contracts with Independent Power Producer (IPPs) to prevent the industries from closure within the country.
A Karachi-based industrialists association, Federal B Area Trade and Industries Association (FBATI) wrote letters to Federal Minister for Power Sardar Awais Khan Leghari and Minister for Commerce Jan Kamal Khan, apprising the challenging situation of the industries due to exorbitantly high electricity tariff.
High power tariffs Imposed due to these IPPs have led to the closure of significant portion of our industry, causing immense suffering for the people of Pakistan, the letter reads. The exorbitant costs of electricity have made it increasingly difficult for businesses to operate, resulting in widespread unemployment and economic instability, especially small and medium-sized enterprises, which form the backbone of our economy.
President FBATI, in the letter, urged to take decisive action and terminate or renegotiate the agreements with these producers to regulate power tariffs in a manner that is fair and sustainable for both consumers and businesses.
It is clear that the actions of the IPPs are jeopardizing the future of our country. The closure of industries not only impacting our economy and our social values, leading to increased poverty and social unrest. This situation is untenable and requires immediate intervention from the highest levels of government.
With your support and intervention, it is possible to alleviate the current crisis and hope to see prompt and effective measures to address the challenges posed by the IPPs to safeguard the interest of our country and its people, the letter further reads.
Pakistan is a huge market for IPPs which can even make handsome money through generating low-cost electricity from solar energy, Syed Raza Hussain remarked.
Source: Dawn, Tribune, Daily Jang, Business Recorder
https://www.dawn.com/news/1846952
https://tribune.com.pk/story/2481413/industrialists-urge-end-to-ipp-contracts
