Peshawar  -  The Sarhad Chamber of Commerce and Industry and Mardan Chamber of Commerce and Industry have described the Independent Power Producers (IPPs) as cancer for the national economy, businesses and industry and asked to immediately cancel all the agreements with these ‘anti-masses’ power producing companies.

The SCCI president Fuad Ishaq addressing ‘Tajir Convention’ termed these power producing companies as a cancer for the country’s economy, business, industry and even turned miserable the life of a common men.

He lamented that despite production of surplus hydle electricity and natural gas in Khyber Pakhtunkhwa, the mafia’s agents in the government and NEPRA are charging same rates to consumers of Khyber Pakhtunkhwa with major provinces, which he said is against the constitution and completely injustice with the terrorism-affected business community and common people of the province.

Fuad Ishaq said that SCCI has already rejected the additional taxation in the annual budget 2024-25, stating that it has not only made it difficult to keep operational industry, business and trade but also made impossible after introducing slab system, and including multiple taxes. He said that tax system in Pakistan has been implemented on the pattern of a developed Australian tax law, which has failed in income, sales tax and other taxes.

The SCCI chief stressed that it is essential that system on pattern of Australian should be replaced on tax model of the United Arab Emirates (UAE). Fuad Ishaq was speaking this in a ‘Tajir Convention’ on the theme of “Anti-people Budget and difficulties of traders’ community” jointly organised by Jamaat-e-Islami Pakistan and Pakistan Business Forum in Peshawar.

Central Amir of Jamaat-e-Islami (JI) Hafiz Naeem-ul-Rehman was the chief guest at the event, while Pakistan Business Forum (PBF) central president Kashif Chaudhry, JI provincial amir Prof Ibrahim, members of the SCCI Nadeem Rauf, Saddar Gul, Fazl-e-Wahid, trade leaders and representative of business community were largely attended the convention.

Terming the IPPs an extra burden on the country’s economy, Fuad Ishaq said the government had paid over Rs2200 billion in head of capacity charges to IPPs only last year. In the fiscal year 2024-25, he revealed that a huge amount of Rs2800 billion would be paid to IPPs in head of capacity charges, and to bestow blue-eyed the ‘cruel rulers’ made contracts with 12 new IPPs, which need to be halted.

He also claimed that SCCI played a front foot role against the IPPs contracts and vowed to play its role until the cancellation of these cruel agreements. The government made payment of Rs 60billon to those plants which even didn’t remain operational for a single day, Ishaq revealed.

The SCCI president also informed that of the total 4500 megawatt electricity production in Khyber Pakhtunkhwa, about 2700MW is consumed in summer and upto 1100MW in winter, and additional electricity is being supplied to the national grid.

Similarly, he said Khyber Pakhtunkhwa is producing 31000 barrel oil every day which is about 42 per cent of the total oil production of the country, but despite that no oil refinery was set-up in the entire Khyber Pakhtunkhwa.

Likewise, he said that Khyber Pakhtunkhwa is producing 550mmcfds gas against its total consumption of 200mmcfds while the province’s LPG production is 850 metric ton/day. He also informed that out of the total production of natural gas is 35mmfcds are given to industry, 40mmfcds to CNG sector, while 125mmfcds to commercial and domestic consumers.

Furthermore, he explained that natural gas Rs2700 per mmbtu is being charged from industry whereas Rs4000 mmbtu being charged from commercial and domestic consumers.

Despite the surplus gas production, he said Khyber Pakhtunkhwa was put into the RLNG basket which was totally unfair and unacceptable.

The total electricity installed capacity in Pakistan is 24000megawatt, but demand is 30000megawatt while power transmission system capacity has been reduced from 24000MW to 18000MW, Ishaq elaborated.

The SCCI chief said Pakhtunkhwa Power Development Organisation (PEDO) made schemes on the run of rivers but progress on these schemes was at snail pace.

Fuad Ishaq condemned the imposition of withholding tax at a ratio of 2.5 percent on traders’. He said SCCI categorically rejected the collection of additional taxes from the business community.

MARDAN: Mardan chamber of commerce and industry (MCCI) president Zahir Shah said the contracts with independent power producers (IPPs) are hostile to the country and destructive to the economy and demanded their immediate termination.

“Along with this, the interest rate on banks’ loans should be reduced to a minimum and the industry should be saved from closure”, he added.

 He expressed these views while talking to the media persons.

Zahir Shah described IPPs as a blight on the country’s economy and demanded a forensic audit of these contracts and their immediate termination. He further said that a comprehensive inquiry should be conducted into over-invoicing and mis-declaration of capacity in the IPPs contracts and to check that the government of Pakistan was cheated so much and to hold all the concerned people/officers accountable and also receive the full amount from them.

He argued that due to the IPPs agreements, the people are bubbling and the industries have reached the brink of destruction and the termination of these agreements has become inevitable for the stability and development of the country’s economy. He said that the Mardan Chamber fully supports the electricity payment model where payments should be made only for the electricity actually supplied and consumed.

He demanded from the government and related institutions to use the abundant water resources available in the country in an efficient manner to provide cheap and green energy to the consumers.