ISLAMABAD: Minister for power division Owais Ahmed Khan Laghari has once again ruled out the possibility of terminating the agreements signed with independent power producing companies.
In an interview with a foreign media channel, the minister said that there was no plan of the government to abolish the agreements with the independent power producers (IPPs). However, he said the government was in talks with the IPPs to change the terms and conditions of the agreements gor providing relief to the consumers and in this regard the nation would hear some good news very soon.
He claimed that the IPPs were not solely responsible for the rising cost of electricity. He said the main problem was the high rates of rent being paid for the powerhouses.
As Pakistan is facing the issue of rising tariffs of electricity, people have blamed the present and past governments for the agreements with IPPs for it.
They have been protesting and asking the government to do away with the agreements with IPPs, saying they are producing and selling electricity to the government at exorbitant rates.
The government under these agreements is bound to pay billions of dollars to the IPPs, most of which are not even producing any electricity but receiving the charges.
It has been alleged that there are over 100 IPPs and most of them are owned by business tycoons, politicians and Chinese companies.
Despite the loss of billions of dollars in terms of payment to the IPPs, the government is not ready to end these agreements saying in that case the companies can approach international court causing more losses to the country.