Karachi: The FPCCI Standing Committee on Energy, led by Malik Khuda Bakhsh, convened an emergency meeting to address the severe economic repercussions of high electricity charges in Pakistan, which they attribute to favorable conditions for 40 Independent Power Producers (IPPs). The committee highlighted that the public is shouldering the burden of these charges, exacerbating the nation’s financial woes.

According to Federation of Pakistan Chambers of Commerce and Industry, the committee voiced strong objections to the capacity charges levied by IPPs, which are currently set at Rs 24 per unit for electricity that remains unused, while the regulated rate by NEPRA stands at Rs 8 per unit. This discrepancy is placing unsustainable pressure on industries, risking closures and significant job losses across the country. The meeting underscored the critical impact of these charges on foreign investment and economic stability.

The resolution passed during the meeting called for an urgent reassessment of the agreements with IPPs, with a view to reducing electricity costs. The committee also entertained the possibility of terminating contracts with IPPs that do not align their charges with governmental expectations. Immediate governmental intervention was urged to stabilize and reduce energy costs, deemed vital for ensuring the economic future and industrial competitiveness of Pakistan.