Karachi: Junaid Naqi, President of the Korangi Association of Trade and Industry (KATI), has praised the federal government’s recent move to terminate agreements with five inactive Independent Power Producers (IPPs), emphasizing the need for comprehensive review and reform of all IPP contracts to foster economic stability in Pakistan.

According to Korangi Association of Trade and Industry, Naqi credited KATI, led by Patron-in-Chief S.M. Tanveer, as the initial voice raising concerns over the inefficiency of these IPPs, which he described as a financial drain on the national treasury. He expressed gratification with the success of KATI’s advocacy efforts, which he believes have reinforced the organization’s commitment to advocating for the business community’s interests.

Naqi elaborated on the situation by pointing out that these inactive IPPs had been receiving billions of rupees annually without producing or supplying any electricity, labeling it a clear injustice. Furthermore, he revealed that contracts with another 107 IPPs are currently under review, expressing optimism for outcomes that are both transparent and equitable.

Highlighting the contributions of key figures, Naqi commended the work of former caretaker Commerce Minister Gohar Ejaz, head of the IPP Task Force Muhammad Ali, and other senior officials for initiating necessary reforms. He underscored that future payments should correspond strictly to the actual electricity produced and delivered, which he argues will significantly alleviate the financial strain on the nation.

Naqi also noted that the successful renegotiation of these contracts marks a critical advancement towards solving longstanding issues within Pakistan’s energy sector and laying the groundwork for a sustainable energy future.