In a recent session with the National Assembly Standing Committee on Power, Power Secretary Fakhar Alam Irfan refuted claims of external coercion during the renegotiation of contracts with Independent Power Producers (IPPs). He emphasized that the discussions were conducted amicably, aiming to address violations identified within the IPP agreements.
Irfan stated, “We invited all IPPs and informed them to resolve matters through dialogue; otherwise, a forensic audit would be conducted.” This statement comes amidst reports suggesting that Pakistan’s security services exerted significant pressure on utility companies to terminate their contracts early, a claim the government denies.
The committee also addressed concerns regarding the performance of the Lahore Electric Supply Company (Lesco), which reported losses of Rs 83 billion last year, attributed to non-recovery of bills and electricity theft. Additionally, discussions highlighted the government’s plans to install a 1,000-megawatt battery storage project in the southern region to stabilize the grid by storing wind energy, with talks underway with international financial institutions for funding.
These developments occur in the context of international scrutiny, as the World Bank’s private finance arm and other development institutions have criticized Pakistan for army-led renegotiations of energy contracts, urging the country to honor its contractual commitments to maintain investor confidence.
