Hafiz Naeem demands forensic audit of IPPs, further reduction in power tariffs

KARACHI: Jamaat-e-Islami (JI) Pakistan chief Hafiz Naeemur Rehman has called on the government to conduct a forensic audit of Independent Power Producers (IPPs), ARY News reported on Friday.

Speaking at a press conference in Karachi, he stated that all previous governments, including those led by PML-N, PPP, PTI, and PDM, have supported the IPPs.

Responding to the recent reduction in electricity prices, Hafiz Naeem took credit for the decrease in power tariffs, claiming it as a significant achievement of the JI movement against the IPPs. He added that the reduction in electricity prices should have been more substantial.

The JI leader demanded that Prime Minister Shehbaz Sharif order a forensic audit, urging that those responsible for IPPs fraud be held accountable before the nation.

He further emphasized that it was JI who had forced the government to review and revoke the contracts with the IPPs.

Hafiz Naeem also criticized the IPPs for enjoying substantial tax breaks on profits under the guise of capacity charges.

He pointed out that IPPs do not pay taxes, and in recent years, they have been exempted from taxes amounting to Rs1,700 billion.

Read More: PM Shehbaz announces reduction in electricity prices

Noteably, Prime Minister (PM) Shehbaz Sharif on Thursday announced a reduction in electricity prices in a ‘major’ relief to the public.

Addressing an event organised for the announcement, PM Shehbaz revealed that the government has decided to decrease the electricity tariff by Rs 7.41 per unit for domestic conusmers.

The prime minister also announced a reduction of Rs 7.59 rupees per unit for industries.

PM Shehbaz expressed the confidence that the reduction in electricity prices will trigger economic activities in the country. He described the reduction as a gift to the nation on the occasion of Eid.

“I have come to share good news regarding Pakistan’s economic growth on the occasion of Eid. The promise made by Nawaz Sharif in the party manifesto has been fulfilled today,” he said.

“The benefit of the global decrease in oil prices will be passed on to the people in the form of reduced electricity prices,” said the prime minister. “Fortunately, the IMF has agreed to provide relief”.

He said that successful negotiations with Independent Power Producers (IPPs) will result in a massive saving of Rs3,696 billion. To address the issue of circular debt, which currently stands at Rs2,393 billion, PM Shehbaz said arrangements have been made.

The prime minister also expressed his determination to tackle power theft, which amounts to Rs600 billion annually. He stressed the importance of privatizing all power distribution companies or transferring them to provincial authorities.