No Result
View All Result
Tuesday, July 1, 2025
MM News
اردو
  • Home
  • Latest News
  • National
  • Showbiz
    File photo

    Post-mortem report of Shefali Jariwala reveals heart attack as cause of death

    JioHotstar has released the teaser for Sarzameen, starring Prithviraj Sukumaran, Kajol, and Ibrahim Ali Khan in a powerful patriotic thriller.

    Is Ibrahim Ali Khan & Kajol’s ‘Sarzameen’ anti-Pakistan?

    Squid Game 3 released on June 27, on Netflix.

    Squid Game Season 3: Stream it or skip it?

    file photo

    Has Alizeh Shah found her ‘Mr. Perfect’? Social media posts spark speculation

    (File Photo)

    Mehwish Hayat calls marriage a gamble, slams gendered expectations in showbiz

    Vicky Kaushal

    What did Vicky Kaushal say about Katrina Kaif’s feedback on his films?

  • Thought Box
  • Business
  • Opinions
  • Technology
  • The Other Side
MM News
  • Home
  • Latest News
  • National
  • Showbiz
    File photo

    Post-mortem report of Shefali Jariwala reveals heart attack as cause of death

    JioHotstar has released the teaser for Sarzameen, starring Prithviraj Sukumaran, Kajol, and Ibrahim Ali Khan in a powerful patriotic thriller.

    Is Ibrahim Ali Khan & Kajol’s ‘Sarzameen’ anti-Pakistan?

    Squid Game 3 released on June 27, on Netflix.

    Squid Game Season 3: Stream it or skip it?

    file photo

    Has Alizeh Shah found her ‘Mr. Perfect’? Social media posts spark speculation

    (File Photo)

    Mehwish Hayat calls marriage a gamble, slams gendered expectations in showbiz

    Vicky Kaushal

    What did Vicky Kaushal say about Katrina Kaif’s feedback on his films?

  • Thought Box
  • Business
  • Opinions
  • Technology
  • The Other Side
No Result
View All Result
No Result
View All Result
MM News
اردو
  • Latest
  • Showbiz
  • Thought Box
  • Business & Stock
  • Opinions
  • Technology
  • The Other Side-Pakistan
Home Uncategorized

Inquiry report on power sector stirred fierce debate on energy crisis: Ismail Suttar

MM News Staff by MM News Staff
June 15, 2020
KARACHI: President of the Apex Body of Manufacturers Ismail Suttar has said that the root cause of the burgeoning circular debt is the sovereign guarantees of Rate of Return (ROR) to IPPs (Independent Power Plants) in terms of US$ and not Rupees.
With a weakening rupee against the US Dollar, the cumulative 13 years’ loss amounted to an astounding Rs. 4,802 billion, which calls for full-fledged forensic auditing, and take and pay policy, without any possibility for negotiations
In a statement, he said that the inquiry report on the power sector has stirred fierce debate on the energy crisis of Pakistan and its identified link to the IPPs.
The installed electricity generation capacity in 2020 stands at approximately 35,000 MW, but the average energy demand is 19,000 MW because industries are not operating at their optimal potential.
This excess capacity stored in power generators of IPPs is what the government is liable to pay to the IPPs in US Dollars and not Rupees. 
“The aggressive escalation in energy tariffs is a direct result of the excess capacity payments to IPPs in US Dollars. This greatly adds to the public debt of the government and leaves it no choice but to pass it onto the consumers through NEPRA in the form of additional tariffs,” he said.
“Consequently, when consumers are faced with this wrath and are unable to repay distribution companies like K-Electric, they resort to illegal means to consume electricity through pilferage by hooking and defecting meters,” he added.
He further said that the economic loss emanating from these non-payments is roughly equivalent to Rs. 12 billion, while circular debt expands by Rs. 128 billion. Just imagine the devastating socio-economic impact of this vicious cycle.
Ismail Suttar said that during wintertime when demand is low, the IPPs are producing less energy but charging exorbitant capacity payments.
This is also reflected in the IPP report, which further highlights that power companies are actually earning a hefty return on equity as high as 87 percent. This shows that governments of the past, when deciding policies for IPPs, did not pay any heed to the sustainable future of Pakistan, and today the industries are suffering miserably because of it.
The EFP president stated all responses must be impeached, without any remorse whatsoever. There is no room for negotiations. Forensic auditing must be done to save the common man and the dying industries.
Tags: ISMAIL SUTTARMM groupmm newsmm tv
ShareTweetSendShare
Previous Post

Unity for COVID-19 crisis

Next Post

Beijing conducts mass testing as new cluster triggers lockdown

Related Stories

File photo
Daily Buzz

Mehr Bano opens up about harassment in the entertainment industry

June 30, 2025
Photo credit Express News
Uncategorized

US woman travels to Pakistan for her online lover

June 30, 2025
File photo
Uncategorized

Pakistan elected UNIDO president first time ever

June 30, 2025
File photo
Uncategorized

Sanam Javed gets bail in anti-state remarks case

June 30, 2025
Justice Sardar Muham­mad Sarfraz Dogar
Uncategorized

Justice Dogar notified as senior-most IHC judge in revised seniority list

June 29, 2025
File photo
Business & Stock

FBR, banks to share data to curb tax evasion

June 26, 2025
File photo
Uncategorized

MDCAT 2025: Expected entry test date in Pakistan announced

June 25, 2025
File photo
Uncategorized

Hunza’s Lexus hotel hit by flash flood

June 25, 2025
File photo
Uncategorized

Malala Yousafzai launches ‘Recess’ to empower women and girls through sports

June 25, 2025
Representational image
Transport

Monsoon rains: PAA issues advisory to pilots over birds

June 25, 2025
Next Post

Beijing conducts mass testing as new cluster triggers lockdown

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Trending Stories

File photo
Film & TV

Post-mortem report of Shefali Jariwala reveals heart attack as cause of death

by MM News Staff
June 30, 2025
Online/File photo
Prices

Govt end electricity duty from power bills

by MM News Staff
June 30, 2025
File photo
Daily Buzz

Mehr Bano opens up about harassment in the entertainment industry

by MM News Staff
June 30, 2025
File photo
Crime

Swat Tragedy tied to river diversion by land mafia, reveals initial probe

by MM News Staff
June 30, 2025
Photo credit Express News
Uncategorized

US woman travels to Pakistan for her online lover

by MM News Staff
June 30, 2025

Opinion

Munir-Ahmed
Portugal and Pakistan: Building a Bilateral Bridge in a Fractured World
June 29, 2025
- Munir Ahmed
munir ahmed oped
A Peace Prize for Betrayals: Rethinking Pakistan’s Strategic Alliances
June 28, 2025
- Munir Ahmed
munir ahmed oped
“Run Lola Run” – More than a movie to cultural bridging
June 27, 2025
- Munir Ahmed
No posts found
See all

Weather Updates

(File Photo)
Top News

Weather forecast for Karachi today

by MM News Staff
June 30, 2025

The Pakistan Meteorological Department (PMD) has predicted partly cloudy and humid weather for Karachi...

Rain

Monsoon showers hit Karachi, more rain expected in coming hours

June 28, 2025
file photo

Showers continue across Karachi, bringing relief from the heat

June 27, 2025
file photo

Will Karachi receive more rain today?

June 27, 2025
See all

Prices

Online/File photo
Prices

Govt end electricity duty from power bills

by MM News Staff
June 30, 2025

Federal Minister for Energy Awais Leghari has formally requested all provincial governments to eliminate...

LGP prices have been slashed ahead of Ramadan. File photo

LPG prices slashed by Rs7.51 per kilogram for July 2025

June 30, 2025
(File)

Gold price increases Rs800 per tola

June 30, 2025

Rs1.15 per unit cut likely in power tariff

June 30, 2025
See all

Transport News

(APP)
Transport

Rs150 billion approved to make Rawalpindi a ‘signal-free’ city

by MM News Staff
June 29, 2025

The Punjab government has approved a record-breaking development package worth Rs.150.0 billion for Rawalpindi...

file photo

Pakistan set to launch train service from Lahore to Russia next month

June 29, 2025
Maryam Nawaz

Maryam Nawaz orders 240 electric buses for South Punjab districts

June 28, 2025

Two planes avoid major accidents following bird strikes at Karachi airport

June 27, 2025
See all

MM Digital (Pvt.) Ltd.

MM News is a subsidiary of the MM Group of Companies. It was established in 2019 with the aim of providing people of Pakistan access to unbiased information. Contact Details: 03200201537

Quick Links

  • Home
  • Advertise
  • MM News Urdu
  • The Other Side-Pakistan
  • Contact Us
  • Privacy Policy

Top Pages

  • Latest News
  • Showbiz
  • OP-ED
  • Technology
No Result
View All Result
  • Latest News
  • Showbiz
  • Thought Box
  • Business
  • Opinions
  • Technology

© Copyright 2024 MMNews - All Rights Reserved.