Former caretaker minister steps up criticism of IPPs

FAISALABAD: Independent Power Producers (IPPs) have kept the industry and all other sectors of the country hostage while the patriotic business community is trying to make Pakistan the fifth largest economy in the world.

This was said by Dr. Gohar Ejaz, former caretaker federal minister and chairman of think tank on economic policy and business development, while addressing a press conference after the gathering of business leaders at Faisalabad Chamber of Commerce and Industry Friday.

He said the price of electricity in the whole world is not more than ten cents, but here the whole country is being sacrificed to bless 40 families. He said that many people question why you did not raise this issue when you were a minister. He said that he had raised the issue in every cabinet meeting as Commerce Minister that no industry can run on 16 cents electricity.

He said that he conducted a study that the industrial sector is giving subsidy of 24 thousand crores rupees to other sections. In the light of this study, according to the bills passed by the Special Investment Facilitation Center, industries will get electricity at 9 cents. He said that he worked as a minister for 200 days and during that time exports increased by three and a half billion dollars.

He said that 240 billion rupees were taken out for this purpose, but it was decided that this is not the mandate of the caretaker government and the next elected government will make an announcement about it. He said that electricity at 42 rupees to industry, 60 rupees to domestic consumers and 80 rupees to commercial consumers is neither acceptable nor tolerable.

He said that 2 lakh 10 thousand crores are being given to IPPs running at less than 50%.He said that the electricity system is not being run by the government. Karachi Electric has recently bought electricity from wind and solar for 10 cents through open bidding, while the government of Pakistan is buying the same electricity for 80 rupees, which will be charged to consumers later.

He said that the four pillars of the government, the legislature, the administration, the judiciary and the media are requested to perform the highest duty of protecting the rights of the people under the social contract. He said that we are being intimidated by the threat of international agreements even though none of the IPPs themselves have adhered to their agreements and there is clear evidence of this.

He said that that is why they demand the judiciary to conduct a forensic audit of them. He said that due to the heavy electricity bills, every section is bent on protest, but he thinks that the time has not come to call for a strike. However, the four pillars of the state are requested to play their role honestly and relieve the people from this problem.

During the question and answer session, Dr. Gohar Ejaz said that the 40 families that own IPPs are not afraid of anyone, but I ask them to be afraid of Allah because they themselves have not kept the agreements. He said that in 7 months, he had increased the agricultural exports of Pakistan by three and a half billion dollars, while the manufacturing sector also has the potential to increase by 8 billion dollars. He said that economic policies follow economic principles. Government should provide favorable environment to people.

These people can change the destiny of Pakistan. Earlier, United Business Group Chairman SM Tanveer said that FPCCI has taken up the power issue seriously. He said that more than a hundred industries have been closed while lakhs of workers have become unemployed, but still the government does not understand what the problem is and how to solve it.He said that 2100 billion rupees are being paid to IPPs without generating electricity. If the transmission lines are not laid for the transmission of electricity, then what is the fault of the people?

He said that the whole of Pakistan is crying because of the expensive electricity, while the people of Faisalabad are also ready to protest. He said that 52% of the power plants belong to the government, it is not known who he is trying to save. He said that the government’s industrial policy has also failed, which will increase unemployment. He said that the government has to find a solution before the public protest starts.

Former President of FPCCI Mian Mohammad Idrees said that national level brands are closed while the SME sector is also closing. He said that now the inflation is under control, then why is the policy rate not being reduced.

He said that we think the budget of IPPs will exceed the national defense budget next year. These planters have earned more than their investment so now they should have mercy on the people. He said that the country needs new taxpayers, similarly FBR should have PMR. While governance has to be improved as well as corruption has to be controlled.

Faisalabad Chamber of Commerce and Industry President Dr Khurram Tariq said that Faisalabad is burning and crime has tripled due to unemployment. He said that the closure of a hundred factories is only symbolic, thousands of institutions have been closed here and this trend is increasing.

Senior Vice President Dr. Sajjad Arshad, Vice President Haji Muhammad Aslam Bhalli and former president of K Federation Daru Khan Achakzai, Ahmed Chinnai and Zaki Ijaz were also present on the occasion.

While Patron-in-Chief of Pakistan Textile Exporters Association (PTEA) Khurram Mukhtar, Small Chamber of Commerce and Trade Mian Zafar Iqbal, Arif Ehsan Malik, Mian Farrukh Iqbal, Waheed Khaliq Ramey, Shakeel Ahmed Ansari, Muhammad Asghar Qadri and Chaudhry Muhammad Nawaz also addressed.