FPCCI Seeks Sindh Government’s Support Over IPPs Capacity Charges

Karachi: Mr. Saquib Fayyaz Magoon, Acting President FPCCI, has apprised that FPCCI has sought Sindh Government’s support over the burning issue of the capacity charges of independent power producers (IPPs) as new industry is not being installed in the province; and, the exiting industry is also facing challenges to continue their production and exports. Electricity tariff has become the foremost cause of concern for the industrialists for being unbearable, he added.

It is pertinent to note that Jam Ikramullah Dharejo, Sindh’s Minister for Industries and Commerce, visited Federation House to listen to the concerns, complaints and recommendations of the business, industry and trade community – where Presidents of various chambers of the Sindh province were also present.

Mr. Saquib Fayyaz Magoon, Acting President FPCCI, informed that industrial plots in Karachi’s established industrial areas have reached a market tag of PKR. 300 – 350 million per acre; and, no genuine industrialist is willing to pay that much in current cost of doing business and ease of doing business environs in the country. Industrial plots should be made available to the genuine industrialists for no more than PKR. 20 million for an acre, he added.

Mr. Magoon also pointed out that representation of various Sindh chambers is amiss in Sindh Industrial Board; and, FPCCI advocates to include Presidents of various chambers of the Sindh in the board for the uplift of all sectors, regions and segments. Additionally, the province has so much economic potential that it should have its own detailed industrial policy in consultation of the business community.

Mr. Aman Paracha, VP FPCCI, highlighted that industrialists are facing law & order issues; which are now of a serious nature as various incidents of harassment, violence, theft and kidnapping have been reported. No investor feels comfortable in this kind of situation, he added.

Mr. Abdul Mohamin Khan, VP FPCCI, demanded that primary infrastructure should be completed in industrial and economic zones in various cities of Sindh – so that, the business community can invite national and international investors to Sindh to visit and explore opportunities to set-up industry, forge industrial collaborations and form joint ventures.

Jam Ikramullah Dharejo, Sindh’s Minister for Industries and Commerce, announced that Sindh government has decided to support FPCCI in its endeavors for the renegotiation and restructuring of contracts with IPPs in the interest of economy and its people. This is our official stance that IPPs should be engaged to resolve the issue, he added.

Jam Ikramullah Dharejo maintained that industrialization of Sindh is an integral part of his vision; and, the apex body will be taken onboard to align it with the ground realties. We will also give due representation to the various chambers in the industrial board for an inclusive approach for the industrialization of the province, he added.

In a major development, the Sindh industries minister offered to the business community that the government is ready to take up the issue of overbilling with NEPRA – and, for that matter, industrialists can approach him with the overbilled electricity bills.

Brig Iftikhar Opel, SI (M), Retd.
Secretary General

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