Businessmen urge govt to cancel IPP deals

Lahore: Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI) has underscored the critical importance of cancelling all agreements with independent power producers (IPPs) and procuring electricity from cheaper sources without any capacity charges.

A consensus in that regard was reached at a think tank session of the PCJCCI held at the Chamber Secretariat on Thursday.

“Despite a vast potential for solar energy, Pakistan has only scratched the surface of its capabilities. The country is blessed with abundant sunshine, making it an ideal location for solar power generation,” the PCJCCI said.

In other countries, solar energy is available for four cents but in Pakistan the government is selling it for 13 cents, which needs to be pondered over. Pakistan’s government, while recognising the importance of renewable energy, has introduced some favourable policies and incentives to promote the development of solar energy.

“China-Pakistan Economic Corridor (CPEC) has played a crucial role in fostering solar energy cooperation between the two countries,” PCJCCI President Moazzam Ghurki said, adding that pending capacity payments of Rs2 trillion, required to be given to the IPPs, had paralysed economic activities.

He urged the government to take decisive action before the prevailing desperation triggered a total economic collapse.

Speaking on the occasion, PCJCCI Senior Vice President Yulong highlighted that large-scale development of solar power in China, coupled with continuous innovation and a complete industrial chain, was driving down production costs and making new energy products more affordable globally.