Government Pays 1.95 Trillion Rupees to IPPs in One Year, Says Former Commerce Minister

Islamabad: Former Commerce Minister Dr. Gohar Ejaz has shared data on payments made to Independent Power Producers (IPPs), revealing a staggering 1.95 trillion rupees disbursed in the past year. Dr. Gohar highlighted that these payments, coupled with rising fuel costs and capacity payments, are causing distress to industrial, commercial, and domestic consumers alike.
He pointed out that the government is purchasing electricity at varying rates: 750 rupees per unit from the most expensive power plants, around 200 rupees per unit from coal-based plants, and upwards of 50 rupees per unit from wind and solar plants.
Dr. Gohar further disclosed that IPPs were paid 1.95 trillion rupees despite producing less than 20% of their capacity, criticizing the government for agreements that allow overbilling under capacity payments. He emphasized the need to procure electricity only from the cheapest sources, treating all IPPs more like merchant plants rather than guaranteed capacity providers.
Highlighting ownership statistics, he noted that 52% of power plants are government-owned while 28% belong to Pakistan’s private sector. Dr. Gohar condemned what he termed as corrupt contracts and mismanagement, which, he asserted, have led to electricity being sold at exorbitant rates of up to 60 rupees per unit.
He urged action against these contracts involving 40 families, stressing the necessity to protect the country’s interests.