ISLAMABAD: Business leaders have voiced strong criticism over the reversal of the promised Rs7.41 per unit electricity relief and the continued outage of the 969MW Neelum-Jhelum Hydropower Project (NJHP), warning it could accelerate de-industrialisation.
The concerns emerged during a Nepra public hearing on a request by the Central Power Purchasing Agency (CPPA) for an Rs8.7 billion fuel cost refund, equating to 65 paisa per unit, due to lower-than-expected fuel prices in June.
Industrialists highlighted that the relief announced by the prime minister in March was not time-bound, yet its effect has dwindled to just Rs1.15 per unit, with power rates rising from Rs30 to Rs34–35 per unit from July. This contradicts the Special Investment Facilitation Council’s target of Rs25 per unit.
Lahore-based businessman Amir Shaikh criticised the removal of the Rs1.71/unit reduction tied to the ongoing petroleum levy, and the unimplemented gas levy relief for captive plants. Karachi-based industrialists slammed the government for backtracking on IPP renegotiations and failing to revive idle plants like Neelum-Jhelum and Guddu.
FPCCI representatives argued that the rise in solar adoption is easing pressure on the grid and improving Disco performance, while accusing the Power Division of failing to abolish the 1.5% electricity duty from July 1.
CPPA CEO Rehan Akhtar confirmed a minor fuel cost reduction and disclosed that the Neelum-Jhelum plant will remain offline for two years due to technical issues.
Story by Khaleeq Kiani
