Ejaz Calls for IPP Payment Cuts and Lower Rates

Ejaz Calls for IPP Payment Cuts and Lower Rates

Ejaz in his statement suggested the government of Pakistan to halt Rs2,000 billion payment to the IPPs and they should only be paid for electricity produced.

He also suggested lowering the electricity per unit and fixing it under Rs10 for the consumers using 200 units, monthly, while the rate for other consumers should be kept under Rs30 per unit.

Gohar Ejaz suggested bringing the interest rate to 12 percent as the inflation in Pakistan has also dropped and currently is at 12 percent. “Lowering interest rate will help the government to slash Rs3,000 billion loan.”

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Furthermore, he suggested government revive the “no-tax, no-refund” policy for the export industry and lower the income tax for the salaried class.

Earlier on August 1, addressing a press conference, Gohar Ejaz said that 70 percent payment was being taken without generating electricity. “The Independent Power Producers should be paid as much amount according to their power generation,” Gohar Ejaz said.

“We have only one demand, pay as much amount to an IPP as it produces power,” he said.

“We have prepared a petition and going to the Supreme Court,” the former minister said. “Everything will clear with a forensic audit of the IPPs,” he said.