ISLAMABAD: Amid the rising electricity rates in Pakistan, Asia Pak Investment’s officials have proposed ending the dollar-based return on investment for Independent Power Producers (IPP) to switch to Pakistani rupees, ARY News reported.
This development targets reducing the power tariff and provide relief to consumers. Chairman of Asia Pak Investment, Shehryar Chishti, stated that IPPs are aware of Pakistan’s deteriorating electricity situation. He stressed the need to find ways to provide affordable electricity to Pakistani consumers.
Chishti mentioned that Liberty had shared its profits in 2021, and the sector has been facing issues since then.
The chairman also offered suggestions to the federal government to reduce electricity prices. He said that reducing electricity prices is crucial to providing relief to consumers and suggested an emergency meeting of all IPPs to devise a plan to lower electricity prices.
It may be noted the government announced plans to shift the financial burden of payments to Independent Power Producers (IPPs) onto citizens already struggling with inflation.
During a meeting of the National Assembly’s Standing Committee on Energy, the Secretary of Energy – Fakhre Alam Irfan – stated that both the payments to IPPs and the interest on the revolving loan will be borne by the public.
He stressed that the government is being pressurized by the International Monetary Fund (IMF), and cannot afford to increase circular debt. Despite discussions with the IMF, the organization remains firm on its stance.
Earlier on August 20, Federal Minister Awais Leghari said that Prime Minister (PM) Shehbaz Sharif will give good news to people over IPPs within a month or two.
Read More: PM to give ‘good news’ on IPPs within month or two: Leghari
Addressing youth convention in Islamabad, the energy minister said that the steps being taken to address energy crisis in the country. “Reforms are inevitable in energy sector,” he said.
He said the energy billing has been 1100 billion with 400 billion losses in it.
“We silently worked over the issue of the IPPs but all and sundry joined the bandwagon,” energy minister said. “It became good for us as it brings pressure over the IPPs,” he said.
