Sindh assigns Rs8.5bn karachi projects to FWO

  ISLAMABAD: Pakistan’s federal government paid a total of Rs6,405 billion to Independent Power Producers (IPPs) in capacity payments between 2020 and 2025, the National Assembly has been informed, highlighting the growing financial burden associated with the country’s power sector. According to a written response submitted by Federal Minister for Energy Awais Ahmad Leghari, capacity payments increased significantly during the five-year period despite government efforts to renegotiate power purchase agreements and reduce electricity costs. The figures presented to the National Assembly show that capacity payments rose from Rs613.9 billion in FY2020-21 to Rs1,807 billion in FY2024-25. This represents an increase of approximately 194% over the period. The government paid Rs613.9 billion in capacity charges during FY2020-21. The amount increased to Rs775.9 billion in FY2021-22 before rising sharply to Rs1,307 billion in FY2022-23. Capacity payments reached their highest level during FY2023-24, when the government paid around Rs1.902 trillion to IPPs. Although the amount declined slightly in FY2024-25 to Rs1.807 trillion it remained almost three times higher than the amount paid in FY2020-21. Capacity payments are charges made to power producers for keeping their generating plants available to supply electricity, regardless of whether the full generation capacity is actually utilised. These payments are part of the contractual arrangements between the government and IPPs and have frequently been identified as one of the factors contributing to Pakistan’s expensive electricity system and growing circular debt. Responding to questions in the National Assembly, Energy Minister Awais Ahmad Leghari said the government has taken several measures to reduce the financial pressure created by existing power agreements. According to the minister, a government task force has terminated power purchase agreements with six IPPs, while agreements with several other producers have also been revised. The objective of these measures is to reduce electricity costs and limit the financial burden on the national power sector. The Ministry of Energy estimates that the changes made to the agreements could result in savings of approximately Rs4.3 trillion over the remaining life of the contracts. Leghari also clarified that payments made to power producers are based on tariffs determined by the National Electric Power Regulatory Authority (Nepra) and the terms agreed under the relevant power purchase agreements. He rejected the impression that generators were receiving payments outside the approved contractual and regulatory framework, stating that there were no additional payments beyond the applicable arrangements. Despite the government’s renegotiation efforts, the figures show that capacity payments continue to represent a major financial obligation for Pakistan. The Rs1.807 trillion paid in FY2024-25 alone demonstrates the scale of the challenge facing the country’s power sector. The government’s efforts to terminate and revise agreements are expected to provide substantial savings in the coming years. However, reducing capacity payments and addressing the broader issues of electricity pricing, power utilisation and circular debt remain critical challenges for Pakistan’s energy sector.

  ISLAMABAD: Special Assistant to the Prime Minister Iqtidar Wali Khan has launched a strong criticism of the Pakistan Tehreek-e-Insaf (PTI), accusing members and supporters of the party of placing former prime minister Imran Khan above Quaid-e-Azam Muhammad Ali Jinnah and questioning their commitment to the country’s founding principles. Addressing a press conference in Islamabad, Iqtidar Wali Khan alleged that some PTI supporters consider Imran Khan a leader greater than Quaid-e-Azam and do not accept the Two-Nation Theory. He questioned how figures such as Barrister Gohar, Ali Zafar, Umair Niazi and Asad Qaiser, whom he described as patriotic individuals, could remain associated with the party while it was allegedly pursuing such politics. The prime minister’s aide accused PTI activists of repeatedly becoming part of what he called anti-state movements and attempting to continue the events of May 9. He also criticised slogans associated with PTI supporters, including “No Khan, No Pakistan,” and alleged that they compared Imran Khan with Quaid-e-Azam while making fun of Allama Iqbal’s vision for the country. Iqtidar Wali further criticised the PTI’s previous government and levelled serious allegations regarding its administration. He claimed that during the party’s tenure in power, the second floor of the Prime Minister’s House had allegedly been turned into a dance floor, where he alleged that drinking and dancing gatherings were held. He also made allegations about the presence of practices related to black magic within the government setup. He further accused the PTI leadership of making statements that, according to him, undermined the country’s defence capabilities during periods of tension with India. He claimed that when a conflict or Indian attack arose, some PTI figures would say that there was not even enough fuel available for Pakistan’s tanks. The special assistant also criticised PTI supporters for holding protests on Independence Day. He questioned why anyone would choose the national day for political demonstrations, arguing that such actions could cause concern among Pakistan’s enemies rather than contribute to national unity. He appealed to political parties to carefully consider PTI’s political conduct before forming alliances or cooperating with its leadership. Referring to comments attributed to Maulana Naseem Shah about the difficulties faced by Pakistan decades after Allama Iqbal’s dream, he urged political forces to examine what he described as the party’s actions before extending political cooperation. Iqtidar Wali also targeted the PTI-led government in Khyber Pakhtunkhwa. He claimed that the party had governed the province for around 15 years while repeatedly promoting slogans such as “Riyasat-e-Madina” and “Naya Pakistan.” He alleged that, despite these claims, individuals involved in drug trafficking, smuggling and the ice-drug trade had gained influence in the province. He further alleged that some people who previously lacked sufficient resources even for basic expenses had become owners of high-end hotels after gaining political influence. The remarks by Iqtidar Wali Khan come amid continued political tensions between the government and PTI. His statements reflect the sharp political divide between the two sides, with the government repeatedly accusing PTI of undermining state institutions, while PTI has consistently rejected such allegations and maintained that its political struggle is aimed at protecting democratic rights and securing political justice.