Business leaders label IPPs contracts 'Fraud' in meeting with Army Chief

September 6, 2023 (MLN): The business community on Wednesday termed the contracts signed with Independent Power Producers (IPPs) ‘Fraud’ and requested Chief of Army Staff Asim Munir not to revise the agreements on the old terms.

In a high-level meeting with the Army Chief, the prominent business leaders informed that the government has to Rs2 trillion in terms of capacity surcharge to the IPPs even during these crucial times.

The amount which is being paid to IPPs is greater than the defence budget of the country.

Today, details of the agreement with IPPs have been sought in the Senate, business fraternity further informed while providing insights into the said meeting to the media.

Earlier, on Tuesday, the Senate’s Standing Committee on Power criticized perplexed policies related to relief for domestic electricity consumers and demanded a review of agreements with IPPs.

The panel requested the concerned authorities to protect power consumers using up to 200 units monthly from tariff hikes, along with the provision of a single-tier benefit.

They were of the view that a comprehensive review of IPP agreements, price re-evaluation, and improved oversight to prevent over-invoicing is the only way to get rid of the energy crisis.

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