The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the government to terminate agreements with Independent Power Producers (IPPs), citing the ongoing war-like situation and rising tensions in the Middle East.
In a statement, FPCCI officials said that under current circumstances, no guarantees can be ensured regarding agreements or profit margins.
They added that global uncertainty has already led several international companies to withdraw or reconsider their agreements with Pakistan.
The business community also welcomed the government’s proposal to implement a smart lockdown, calling it a necessary step in managing the crisis. However, FPCCI emphasized that the benefits of such measures would only materialize if electricity prices are reduced accordingly.
“Even when electricity consumption declines, the government is still bound to pay capacity charges to IPPs under existing agreements,” the statement noted. “If these payments continue in full, the relief expected from a smart lockdown will not be achieved.”
FPCCI further suggested that new agreements be negotiated after the crisis, ensuring terms that do not result in financial losses for Pakistan.
The demand comes at a time when economic pressures are mounting, and policymakers are seeking ways to reduce fiscal burdens while maintaining energy stability.
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