Islamabad – Pakistan’s annual payments to Independent Power Producers (IPPs) have risen to Rs3.4 trillion, officials informed the Senate Standing Committee on Cabinet Secretariat, highlighting growing strain on the energy sector.
According to Beyond Time News, the National Electric Power Regulatory Authority (NEPRA) told lawmakers that electricity tariffs average Rs36 per unit, with nearly Rs18 per unit going to capacity charges.
Officials said capacity payments stand at Rs1.8–2 trillion annually, while energy payments add another Rs700–800 billion. All payments are routed through the Central Power Purchasing Agency (CPPA).
Senators expressed concern over the rising cost and called for a detailed review of IPP-related payments and subsidies, saying the system is putting continuous pressure on public finances.
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Jamaat-e-Islami (JI) Pakistan chief Hafiz Naeem ur Rehman has also announced a protest in Islamabad on May 15 against inflation, fuel price hikes, and rising electricity bills, alleging that most IPP agreements remain unchanged.
The increase in IPP payments reflects ongoing challenges in the power sector and growing calls for reforms to reduce costs and ease the burden on consumers.
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