Karachi: Malik Khuda Baksh, a key figure in Pakistan's energy sector and the Convener of the Standing Committee on Energy at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), emphasized the urgent need for revising agreements with Independent Power Producers (IPPs) to mitigate rising electricity costs and support economic expansion. This comes after Prime Minister Mian Shehbaz Sharif recognized the necessity of reducing electricity prices to bolster the competitiveness of Pakistan’s agricultural and industrial sectors.

According to Federation of Pakistan Chambers of Commerce and Industry, Malik Khuda Baksh lauded the Prime Minister’s response to concerns raised by the business community, including leaders like Dr. Gohar Ejaz and UBG Patron-in-Chief S.M. Tanveer, regarding the onerous capacity payment terms with IPPs. These agreements are now seen as a significant barrier to affordable energy and are contributing to potential business disruptions and industrial closures.

Khuda Baksh highlighted the collaborative efforts of the United Business Group (UBG) and other associations in bringing these issues to governmental attention, which has led to a reassessment aimed at reducing electricity costs—a critical factor for sustaining business growth in the country. He also recommended significant governmental restructuring to reduce expenditures, advocating for a reduction in ministries and the closure of redundant government institutions as measures to stabilize the economy.