Govt-IPPs pact to cut energy cost will promote industrialisation: PIAF Chairman

By: News Desk      Published: 07:06 PM, 19 Aug, 2020
Govt-IPPs pact to cut energy cost will promote industrialisation: PIAF Chairman

The Pakistan Industrial and Traders Associations Front (PIAF) chairman Mian Nauman Kabir has welcomed the agreement between the government and the independent power producers to bring down the cost of electricity generation, as the cost of doing business continues to increase manifold. 

PIAF chairman, in a joint statement with senior vice chairman Nasir Hameed and vice chairman Javed Siddiqi, congratulated the government as well as the IPPs, to reach a deal in the larger national interest under the 1994 and 2002 power policy, agreeing voluntarily to provide concessions, leading to reduce the cost of power generation and cut circular debt. 

He termed revision of IPPs agreements as a good move despite the fact that some sensitive points were not touched by the negotiating committee and the grace marks were given to the power producers. 

“The federal government, through its new agreement with IPPs, was working towards reducing the cost of electricity in the country,” he said and added that reforms pertaining to the power sector should also be introduced at the earliest. 

Mian Nauman Kabir expressed the hope the government’s new agreement will promote industries and help reduce the burden of circular debt. 

He said the new pact will help provide cheaper electricity to the end consumers, agriculture sector and small businesses which will help these sectors lower their production costs. 

PIAF Chairman proposed that the next target should be making reforms in the power distribution system to further bring down the cost of production, which is very high on account of soaring energy tariffs, expansive fuel and constant rupee depreciation along with rising import duties on inputs, making the local production uncompetitive. He called for taking more concrete steps to attract foreign investment, saving the livelihood of millions of workers associated with various sectors. 

Categories : Business