In Lahore, the Pakistan-China Joint Chamber of Commerce and Industry convened a significant session at their Chamber Secretariat, advocating for the immediate termination of agreements with independent power producers (IPPs).
This stance emerged from a consensus among attendees at a recent think tank gathering.
The PCJCCI emphasized Pakistan’s underutilization of its vast solar energy potential despite being endowed with abundant sunshine, which naturally positions the country as an ideal location for solar power generation. They pointed out that while solar energy costs as little as four cents per unit in other countries, Pakistan’s government sells it at 13 cents—a substantial difference warranting serious consideration and revision.
Acknowledging the government’s efforts in promoting renewable energy through favorable policies and incentives, PCJCCI President Moazzam Ghurki highlighted the pivotal role of the China-Pakistan Economic Corridor in facilitating solar energy cooperation between the two nations. Ghurki also raised concerns over the crippling effect of pending capacity payments amounting to Rs2 trillion owed to IPPs, stressing that these outstanding liabilities have severely hampered economic activities in the country.
During the session, PCJCCI Senior Vice President Yulong underscored China’s success in scaling up solar power through extensive development and technological advancements, which have substantially reduced production costs globally. Yulong emphasized that continuous innovation and a robust industrial chain have made new energy products more affordable and accessible worldwide.
In conclusion, the PCJCCI urged the Pakistani government to take decisive action to alleviate the economic burden posed by IPP agreements and to expedite the transition to cheaper and sustainable energy sources like solar power. They warned that delaying such reforms could exacerbate economic instability and lead to a potential collapse if not addressed promptly
