Karachi, August 01, 2024: An annual report on payments to Independent Power Producers (IPPs) revealed that five major powerhouses received tax-free payments.
According to the report, Hub Power received Rs 260 billion at 16 percent capacity from the government, Engro received Rs 74 billion at 54 percent capacity, and Lucky Group received Rs 62 billion at 28 percent capacity.
Similarly, Sapphire received Rs 34 billion at 34 percent capacity, and Mian Mansha’s powerhouses, operating at 13 percent capacity, were paid Rs 25.6 billion.
Sources indicated that these companies are paid annually under agreements, with the audit department responsible for oversight.
The Ministry of Energy stated that any irregularities would be met with strict action.
Previously, former Caretaker Minister Gohar Ejaz mentioned that the government is paying two trillion rupees to IPPs, which are generating at 30 percent capacity.
In a press conference, he highlighted that 70 percent of the payments are being made without corresponding electricity generation. “The Independent Power Producers should be paid according to their power generation,” Ejaz stated.
He added, “We have only one demand, pay an IPP according to the power it produces. We have prepared a petition and are going to the Supreme Court. Everything will be clarified with a forensic audit of the IPPs.”
Ejaz emphasized, “It is not the government’s job to do business.”
