Karachi: Johar Kandhari, President of the Korangi Association of Trade and Industry (KATI), has demanded the cancellation of all government contracts with Independent Power Producers (IPPs) due to their detrimental economic impact.

According to Korangi Association of Trade and Industry, Kandhari criticized the government's agreements with IPPs, which involve payments in dollars and extensive guarantees, for exacerbating the economic strain by obligating the government to buy electricity in dollars while selling it in rupees. He highlighted that despite paying IPPs 1,800 billion rupees last financial year and owing over 2,100 billion rupees this year, some IPPs have not produced any electricity. Kandhari argued that these contracts are burdensome for the public and economically oppressive, especially with the additional capacity charges for unused electricity. He proposed renegotiating these contracts to involve payments in local currency and to only cover the actual amount of electricity used.

Kandhari has called on the Prime Minister and the Federal Minister of Energy to urgently address these issues, emphasizing the severe implications for Pakistan's economic stability, industry competitiveness, and export capabilities.