Tensions have escalated between Federal Minister for Energy Awais Leghari and former caretaker minister Dr. Gohar Ejaz over Independent Power Producer (IPP) contracts, as electricity bills continue to surge in Pakistan.
Minister Leghari defended the government’s stance, stating that unilateral action against IPPs is constrained by existing contractual obligations and government guarantees. He emphasized the government’s intention to privatize financially-strained power entities while reviewing current IPP agreements to promote cost-effective electricity generation.
Dr. Gohar Ejaz criticized the government’s management of IPP contracts, highlighting concerns over exorbitant capacity payments, which he claims contribute significantly to inflated electricity tariffs. He argued for renegotiating or cancelling “Take or Pay” conditions in IPP contracts, which require payments even when power generation is idle.
The debate underscores deep-rooted issues in Pakistan’s energy sector, including substantial financial burdens attributed to IPP agreements. Both sides exchanged criticisms on social media, reflecting broader public discontent over escalating electricity costs and economic impacts.
Experts emphasize the urgency of reforming Pakistan’s energy policies, advocating for investments in renewable energy sources and improvements in energy efficiency to mitigate future crises and stabilize the economy.
