IPPs crippling economy: PCJCCI

LAHORE: The Pakistan China Joint Chamber of Commerce and Industry (PCJCCI) is urging a dramatic shift in Pakistan’s energy sector, calling for the cancellation of all agreements with independent power producers (IPPs) and a focus on cheaper, renewable sources, particularly solar power.

This was expressed in a PCJCCI think tank session held on Thursday at the Chamber Secretariat. The participants added that despite its vast potential for solar energy, Pakistan has only scratched the surface of its capabilities.

The country is blessed with abundant sunshine, making it an ideal location for solar power generation. Other countries offer solar at four cents, but our government sells it at 13 cents, so we should come together and think about this, they added.

The government, recognizing the importance of renewable energy, has introduced favourable policies and incentives to promote solar energy development. The China-Pakistan Economic Corridor (CPEC) has also played a crucial role in fostering solar energy cooperation between the two countries, the session acknowledged.

President of the PCJCCI Moazzam Ghurki highlighted that the pending Rs2 trillion capacity payments to IPPs have paralyzed the country’s economic activities, urging the government to take decisive action before the prevailing desperation leads to a total economic collapse.

Senior Vice President of the PCJCCI Fang Yulong said that China, with large-scale development of solar power, coupled with continuous innovation and a complete industrial chain, is driving down production costs and making new energy products more affordable globally.

This shift, according to Yulong, benefits the global community, whose current solar capacity still falls short of quantities needed to achieve decarbonization goals. Developing nations require advanced solar capacity to make electricity more accessible and cost-effective for both households and businesses.