Termination of accords with IPPs lauded

LAHORE : The efforts of Prime Minister Shehbaz Sharif for terminating power purchase agreements of IPPs has been termed as a first step for achieving goal of cost-effective electricity for the public and industry.

The government’s move will benefit electricity consumers to the tune of Rs60 billion annually, reducing per-unit electricity costs, and saving the national treasury by Rs411 billion overall, said Malik Talat Suhail, who is spearheading agriculture taskforce under the FPCCI.

In a statement issued on Saturday, he said the recent approval by Federal Cabinet to terminate Power Purchase Agreements with five IPPs marks a significant step in the country's efforts to reform its struggling power sector.

However, Malik Talat, who is also Chairman of the PBF, South Punjab supported the government's efforts to reduce markup rates as well, emphasising that further reductions are essential to ease the cost of doing business.

He also praised the Special Investment Facilitation Council (SIFC) for its collaboration with the government to revive the economy, particularly welcoming the Saudi business delegation's visit to Pakistan. Additionally, he called for the withdrawal of 50 percent Minimum Demand Charges (MDI) on closed industries and urged the government to prioritise the revival of the cotton sector. The focus should be on cotton production with a view to increasing foreign exchange earnings by increasing exports and mitigate the financial strain caused by cotton imports, which have been depleting the country’s reserves.