Addressing the question about how the IPP report disclosed the horrifying reality of how the citizens of this country have been looted, Hamid Mir asked the President what he and the premier have discussed regarding this. In response to this, the President replied that even though he’s sorry to say this but his exact words expressing his own feelings for ‘injustice’ the citizens had to face were, “If this report is true then this country has not only been raped but gang-raped.”
The IPP investigation report that went public shed light on the
deals that allowed these independent power producers to earn illegal profits worth billions of rupees.
The report talks about deals that were signed at the expense of interests of the consumers and the government. The national treasury has suffered a loss of over Rs4 trillion in the last 13 years because of debt and subsidies being given to power producers for the deals. The IPPs however, have seen immense profit. Sixteen IPPs invested around Rs51.80 billion and earned over Rs415 billion in profits.
The summary of the report reads, “Pakistan has regionally the highest power tariffs consequently raising the cost of manufacturingThis has been one of the prime reasons for loss of competitiveness of our industry and the stagnation of our exports. Coal companies with government connivance obtained a tariff which is more than 50% higher than the market rate leading to an annual over payment of $477 million per annum or $14.5 billion over the life of these projects. “The current
The problem arises when it’s discovered that Private companies had provided false oil statistics to avoid higher tariffs. Malpractices by IPPs also include setting up costs, actual fuel use being less than the invoices submitted to Nepra and kickbacks in commission on fuel.