JI renews demand for revision of govt’s agreements with IPPs

RAWALPINDI: Following premature end of last year’s sit-in in Rawalpindi, the leadership of Jamaat-e-Islami (JI) has once again come up with a demand of revision of agreements with IPPs.

“All exploitative agreements with IPPs should immediately be reviewed”, the JI Central Majlis-e-Shoora said while adopting a resolution at its meeting. It may be pointed out here that JI workers led by Central Ameer gave days long sit-in in Rawalpindi to mainly demand for reduction in electricity tariffs.

However, the sit-in was called off in a haste after just signing an agreement with the government team but before issuance of any official notification. The resolution passed by Majlis-e- Shoora demanded that capacity charges must be abolished, operational costs should be based on actual cost.

JI’s Central Majlis-e-Shoora also expressed deep concern and strong condemnation over the government’s failure to fully review the oppressive agreements with IPPs and its violation of the agreement reached between JI and the government in August 2024.

The Shoora has demanded that the benefits of any renegotiated agreements be passed on to the public, and that the per-unit electricity cost be reduced to less than Rs20 for all consumers.

The resolution was presented by Ameer Jamaat-e-Islami Islamabad Engineer Nasrullah Randhawa.

The resolution was passed during the meeting which also called for the cancellation of contracts with IPPs whose plants have become outdated.

To eliminate the circular debt, the process of recovering illegal payments made to IPPs should begin without delay.

Renewable energy sources—such as solar and wind—should be prioritized for electricity generation, and the proposed taxes on them in the upcoming budget should be immediately withdrawn.

The resolution further demanded that K-Electric’s monopoly in Karachi be ended, and that competition be introduced in the electricity transmission and distribution sectors.

The Majlis-e-Shoora affirms that expensive electricity is not merely an economic issue, but also a form of social injustice. Jamaat-e-Islami will continue to raise its voice against this injustice on all platforms and will pursue every constitutional and democratic avenue—including Parliament, courts, media, and public demonstrations—to ensure that the people receive affordable and fair electricity.

The JI’s Central Shoora noted that although the government claims to have reviewed some IPP agreements and announced a reduction of Rs7 to 8 per unit in electricity prices, this reduction is insignificant—like a drop in the ocean.

If all IPP agreements are thoroughly reviewed, electricity prices could be reduced to less than half of their current level.

Furthermore, the current government, in the 2025–26 budget, has imposed an 18% sales tax on solar panels used to generate green energy. This is despite the fact that solar energy is both environmentally friendly and imposes no financial burden on the government.

While the rest of the world is promoting it through subsidies, our shortsighted rulers, in their continued oppression, are depriving the poor even of this sustainable alternative.

The Shoora meeting reminded that JI held a historic sit-in on Murree Road, Rawalpindi, in July/August 2024 to rein in the IPPs and reduce electricity prices.

During this protest, negotiations took place between JI and the government of Pakistan regarding the revision of IPP agreements, reduction of electricity prices, and resolution of other public issues.

“These negotiations resulted in an agreement under which the government committed to forming a task force to review and scrutinize the IPP contracts”, a statement issued by JI spokesman said.

The purpose was to revise the exploitative agreements and reduce the per-unit electricity cost, aiming to provide relief to the public and ensure affordable electricity. It was agreed that this task would be carried out on an urgent basis.

However, the government has yet to fully implement the agreement.

However, later the JI leadership did not manage to get the agreement implemented by the government.

“What was purpose of staging sit-in amid humid heat and then calling it off in a haste”, a JI worker who used to reach venue of the protest in Rawalpindi from his office each day questioned.