Lahore: In a clarion call to action, Chaudhry Zahid Iqbal Arain, former vice president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has urged the government to reassess and restructure Independent Power Producers (IPPs) contracts to align payments with actual electricity production and demand.
Addressing a roundtable conference on the debilitating impact of high power tariffs and IPPs payments on the economy, Arain stressed that renegotiating capacity payment agreements with IPPs could provide a panacea for the high power tariff conundrum, a major obstacle to economic growth.
The seasoned business leader lamented that exorbitant electricity tariffs inflict financial hardships on domestic consumers, fueling widespread discontent and social unrest.
Arain advocated for the adoption of efficient energy policies, promotion of renewable energy sources, and investment in energy infrastructure to reduce reliance on costly IPPs. He emphasized that addressing this issue is vital for fostering a business-friendly environment, ensuring affordable electricity for all, and promoting sustainable economic development.
The senior leader of the United Business Group deplored the excessive financial burdens imposed by capacity charges, which strain public finances and inflate electricity costs, rendering it unaffordable for citizens and businesses.
