Bureau Report
PESHAWAR: Sarhad Chamber of Commerce and Industry on Wednesday filed a writ petition in Peshawar High Court against Independent Power Producers agreements.
In the writ petition, the SCCI prayed for conducting a forensic audit by reviewing all IPPs contracts.
The petition furthermore pleaded to take immediate steps to tackle the issue of IPP Payouts in accordance with correct parameters and bring about substantial relief for all categories of power consumers.
The writ opposed renewal and signing new agreements with IPPs.
It also called for implementation of recommendations of the Special meeting of the Senate’s Standing Committee on Power regarding excess profits paid to RFO based IPPs.
This was told a news press conference by Sarhad Chamber of Commerce and Industry Fuad Ishaq along with vice president Ejaz Khan Afridi, Anjuman e Tajran Lifetime president Haji Muhammad Afzal, former SCCI’ presidents Riaz Arsahd, Malik Niaz Ahmad and traders leaders, held today here at the chamber house.
Fuad during the presser said IPPs agreements unbeneficial for the country’ economy and FPCCI and chambers raised proactively voice against them.
Today, he said SCCI has formally filed a writ petition against IPPs agreement in PHC.
The SCCI president called IPPs a major obstacle in economic growth, which has brought stagnation in industries, business and commercial activities.
He furthered said IPPs is a biggest issue for Pakistan and the coming generation and its elimination become essential.
He added IPPs had been installed which are excessive of the country’ requirement.
Presenting figures before the reporters, Fuad Ishaq informed that the total installed capacity of electricity in Pakistan is 45,000 megawatt.
He explained Pakistan’s hydel power generation remained 11,000 megawatt in the last year while nuclear 3,500MW and green energy and solar energy 3,000MW.
The SCCI chief accused that IPPs agreements were made with blue-eyed people. He mentioned that agreements would be made for more than 12 new IPPs.
Following the protest of FPCCI and chambers, he said renewal of six IPPs has been stopped.
Every year, the cost of payment on head of capacity charges is increasing and this year the government will pay Rs2800billion to IPPs on head of capacity charges, Fuad told the media.
He elaborated according to SCCI’ research, capacity payment to IPPs is being made as Rs24/kw against Rs17.31/kw as per report of NEPRA, which is clear contradiction of the agreement that had been made with IPPs, which is biggest burden on exchequer that had been collecting from poor people pockets.
Fuad Ishaq said Pakistan is being cheated in name of IPPs agreement wherein over invoicing and less heat value are being shown.
Furthermore, he said IPPs in their own balance sheets showed that their profits from 36 to 45 percent against 15 to 17 percent profit that had been indicated in the agreement.
He called for conduct of forensic audits and abolishing of IPPs contracts.
Presser also attended by SCCI former SVP Ziaul Haq Sarhadi, former VP Abdul Jalil Jan, Khalid Sultan Khawaja, executive members Haji Ghulam Hussain, Fazal Muqeem, Ismail Safi, former provincial chairman APCEA Mushtaq Ahmad, Fahad Amin, Ihsanullah, Rashid Iqbal Siddique, Saddar Gul, Faiz Rasool, Fazal e Wahid, Ishtiaq Paracha, Secretary General Muqtasid Ahsan, and Secretary Sohail Anjum and others.
The SCCI chief gave reference to a report of NEPRA, in which Rs53billion till June 2022 had been collected from people under the Economic Merit Order.
He said decisions were made on adhoc basis in Pakistan, resultantly bringing negative economic growth and business and commercial activities to standstill the situation and increase de-industrialization.