While the federal government’s cancellation of five Independent Power Producers (IPP) contracts is commendable, much more needs to be done. For two decades, successive governments have failed to regulate the guaranteed capacity payments to over 100 IPPs. This oversight persists despite the lack of an authentic audit verifying each unit's capacity to produce electricity – yet trillions of rupees have been paid to IPP owners.
IPP units failing to meet their contractual obligations should face cancellation of their Power Purchase Agreements (PPAs) for breach of contract. The reluctance of successive governments to enforce accountability raises questions of complicity or conflict of interest. It is imperative to conduct a thorough technical audit of all IPP units with capacity payment agreements, without further delay. The consequences of unchecked energy costs are severe, not only for citizens but also for our export sector, which struggles to remain competitive amid the region’s highest energy prices. If Pakistan aims to boost exports and strengthen revenue, we must bring energy costs down. Doing so would give the government the fiscal space to invest in education, healthcare, and essential services, as well as in research and technology. An educated, self-sufficient population is essential to combat extremism and safeguard national security.
Malik Tariq Ali
Lahore
The recent US sanctions on Pakistan’s missile development entities reflect a broader shift in American foreign...
After over a decade since their introduction, the effective implementation of right to information laws in Pakistan...
I think that we have an excess of holidays or days off in Pakistan. Seemingly every month, there are one or two...
In recent days, there have been some reports highlighting how the import of liquefied natural gas is harming the...
With changing societal norms and the rise of social media, many young individuals are struggling to make informed...
As winter takes over, many people in our cities are left to sleep on the streets in the freezing cold. With no...