In a pivotal meeting with the business community of Pakistan, President Asif Ali Zardari addressed the pressing issue of Independent Power Producers (IPPs) and the skyrocketing cost of electricity. Recognizing the critical nature of the problem, President Zardari emphasized the need for a consensus-driven approach among all stakeholders to find a sustainable solution.
President Zardari proposed the formation of a committee comprising business leaders who would be tasked with critically analyzing the IPPs issue and submitting actionable recommendations. He assured the business community that his office would provide full cooperation to this committee to devise a win-win situation for all parties involved. This initiative aims to foster collaboration and ensure that the diverse interests of all stakeholders are considered.
Dr. Khurram Tariq, President of the Faisalabad Chamber of Commerce & Industry (FCCI), represented the business community at the meeting. He highlighted the severe impact of high electricity costs on industrial units, noting that many businesses are being forced to shut down due to the prohibitive expenses. This industrial downturn not only threatens to increase unemployment but also hampers Pakistan’s export potential.
Dr. Khurram underscored the moral issue of charging for electricity that was never produced by the IPPs, a concern that has caused widespread frustration and economic strain. He emphasized the urgent need for presidential intervention to alleviate the financial burden on the populace and industries. He pointed out that while solutions exist, they require a strong will and decisive action to implement.
Faisalabad, a major hub of Pakistan’s textile industry, has been significantly affected by the energy crisis. Dr. Khurram revealed that Faisalabad’s contribution to the country’s textile exports has plummeted from 60% to 45%, with further declines expected if the situation is not addressed. He stressed that to meet the government’s ambitious export target of $60 billion, the cost of doing business must be reduced, and a favorable business ecosystem must be established.
Dr. Khurram presented several recommendations to resolve the IPPs issue, urging for immediate decisions with clearly defined timelines to prevent further economic deterioration. He called for prioritizing these decisions to save Pakistan’s economy from complete collapse. The recommendations included measures to reduce the cost of electricity, ensure the availability of raw materials, and create a supportive environment for businesses.
