Hafiz Naeem calls for forensic audit of IPPs, seeks lower power tariffs

KARACHI: Jamaat-e-Islami (JI) Pakistan chief Hafiz Naeemur Rehman urged the government on Friday to conduct a forensic audit of Independent Power Producers (IPPs), News reported.

Speaking at a press conference in Karachi, Hafiz Naeemur Rehman accused all previous governments—including PML-N, PPP, PTI, and PDM—of supporting the IPPs.

He credited the recent reduction in electricity prices to JI’s movement against the IPPs, calling it a significant achievement. However, he argued that the reduction should have been more substantial.

The JI leader urged Prime Minister Shehbaz Sharif to order a forensic audit and hold those responsible for IPPs fraud accountable before the nation.

He further asserted that JI had compelled the government to review and revoke the contracts with the IPPs. Hafiz Naeem accused the IPPs of exploiting capacity charges to secure substantial tax breaks on their profits.

He stated that IPPs do not pay taxes and have received tax exemptions totaling Rs1,700 billion in recent years. Notably, Prime Minister Shehbaz Sharif announced a reduction in electricity prices on Thursday, calling it a ‘major’ relief for the public.

At the event held for the announcement, PM Shehbaz stated that the government had decided to reduce the electricity tariff by Rs 7.41 per unit for domestic consumers. He also announced a reduction of Rs 7.59 per unit for industries.

PM Shehbaz expressed confidence that lower electricity prices would boost economic activities in the country. He called the reduction a gift to the nation for Eid.

“I have come to share good news regarding Pakistan’s economic growth on the occasion of Eid. The promise made by Nawaz Sharif in the party manifesto has been fulfilled today,” he said.

“The benefit of the global decrease in oil prices will be passed on to the people in the form of reduced electricity prices,” said the prime minister. “Fortunately, the IMF has agreed to provide relief”.

He stated that successful negotiations with Independent Power Producers (IPPs) would result in a massive saving of Rs3,696 billion. To tackle the issue of circular debt, currently standing at Rs2,393 billion, PM Shehbaz confirmed that arrangements have been made.

The prime minister also expressed his determination to combat power theft, which costs the country Rs600 billion annually. He emphasized the importance of privatizing all power distribution companies or transferring them to provincial authorities.