MQM-Pakistan Demands Termination of IPP Contracts Due to Errors

Islamabad: Mustafa Kamal, leader of MQM-Pakistan, has urged to terminate contracts with Independent Power Producers (IPPs) after admitting mistakes. Speaking to media outside NIPA headquarters in Islamabad, Kamal emphasized the need to renegotiate capacity payments.
“Local IPPs have committed errors by tying us to 70% capacity payments. There is an excess of electricity in Pakistan,” Kamal stated. He further added, “We have the capability to generate more electricity. Load shedding continues for up to four days in rural areas despite power surplus. Huge bills are being issued despite load shedding.”
Kamal highlighted that 20 to 30% of IPPs are foreign-owned and appealed to friendly nations to end capacity payment clauses. “We must terminate agreements where IPPs are paid not to generate electricity. Most IPPs belong to friendly countries. Discussion with them is necessary to review capacity payment issues,” he insisted.
He also called for an audit of electricity tariffs by NEPRA, advocating for improvements in the power transmission system. “We need a competitive environment until October to improve the electricity system,” Kamal concluded, stressing the necessity of liberalizing electricity transmission.
NEPRA has reported completing the framework by October to bring improvements to the system. Competition among electricity-generating companies is crucial for the system’s proper functioning.