Islamabad-The government has summoned 13 Independent Power Producers (IPPs) owners to Islamabad after an investigation uncovered “additional profiteering” by power plants established under the China-Pakistan Economic Corridor (CPEC). The owners have been directed to bring financial reports to the meeting.
The probe, led by Special Assistant to PM on Power Division Muhammad Ali, follows concerns raised by the Senate’s Functional Committee on Devolution about the functioning of IPPs and lack of transparency in contracts.
IPPs have faced criticism over alleged involvement in exorbitant electricity bills, leading to calls for reviewing government agreements with them. Energy Minister Awais Leghari has admitted that Pakistan has the highest electricity tariffs in the region but warned against unilaterally terminating contracts, citing sovereign guarantees.
Power Division refutes claim, says no IPP owner is directed to appear before inquiry committee,
The investigation team has visited power plants to collect records and data, and senior executives will be interrogated in Islamabad. The government aims to negotiate with IPP owners, seeking their support, and plans to reduce capacity payments and profits of government-owned power plants. Talks with Chinese IPPs will also be held to seek concessions.
Senate Committee Demands Full Disclosure of IPP Contracts and Records Since 1992
However, the Power Division has refuted reports of summoning IPP owners, stating that no unilateral action is being taken and that talks with IPPs have been ongoing.
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