Daily Times

The 19 or so Independent Power Producers (IPP) are still awaiting the first payment from the government under an agreement signed on February 28. The payment to the tune of Rs 85 billion is in limbo partly due to the ongoing investigation by the National Accountability Bureau to issue a clean chit. As a result, a hullaballoo has ensued within the IPPs, especially those established under the pre-1994 Generation Policy and the 1994 Generation Policy. Disgruntled parties are making note of the interest accruing on non-payment and there is even talk of these companies sending default notices to the government.

Last month, Islamabad was painting the town red; having signed new binding agreements with as many as 46 IPPs. The agreed-upon concessions were touted as an excellent strategy to slow down the spiralling circular debt. By saving the national exchequer as much as Rs 800 billion on capacity payments, the state was well on its way to liquidate most of the Rs 1.6 trillion owed to oil and gas companies. A much-needed initiative indeed!

The last substantial move to clear the skyrocketing bills was made by the PML-N government when it paid about Rs 480 billion. Ishaq Dar had then claimed that this would ease the power crisis and, in turn, get the economy back in shape. But seven years later, we are still standing at the same crossroads as the poor minister! Call it politicisation of a commercial issue or a masterstroke of bad luck, but all goodwill generated by the ruling party over the sweet bargain is about to go down the drain. It can only be hoped that the present technical default–that was highly curable–is addressed in due time. These concessions are existentially crucial to stabilise the power sector. Going by the claims making rounds on television screens, the new rolled-out deal would have an impact of Rs 1.5 per electricity unit.

Yet, there is much, much more at stake here! Many rainmakers in the power sector have lodged a protest against the shoe being on the other foot. There is an uproar against the Mohammad Ali Inquiry Committee report being used as a stick to intimidate the IPPs. Some–rightly–wonder why such threats of corruption inquiries are unfurled for only the business community.

The government may keep its head buried in the sand, but not everyone can get along this hunky-dory ride. There is, undoubtedly, a clear conflict of interest when it comes to some crucial seat-holders in the energy ministry. The aforementioned deal, for example, counts Razak Dawood and Nadeem Babar among the top beneficiaries. Dawood’s firm was to allegedly get a sweet deal of Rs 14 billion, in addition to a multibillion dam contract. More worrying is his constant defence of the business elite when it comes to accountability campaigns–an inclination that goes back to his days in Musharraf’s cabinet. Meanwhile, companies belonging to the kin of former SAPM were to be paid Rs 7 billion. Though no illegal activity has yet been brought to the fore by investigative agencies, even a guise of such vested interests undermines the PM’s crusade for transparency. Reiterating what this paper has said, time and again, PM Khan needs credible people at his beck and call whose records are all spic and span. Any appointment otherwise would simply be availed as a gift from heaven by his critics; determined pick holes in each and every policy! *