Power Capacity Payments Have Become the Biggest Economic Burden on the Public

KARACHI:(HRNW) Senior leader of the Insaf Lawyers Forum (ILF) Karachi and noted legal practitioner Advocate Hasnain Ali Chauhan has alleged that the government which came to power after the regime change has burdened citizens with soaring inflation, higher taxes and repeated increases in electricity tariffs instead of providing public relief.

In a press release issued on Thursday, Advocate Hasnain Ali Chauhan claimed that irregularities in the power sector and capacity payments made to Independent Power Producers (IPPs) had become a major financial burden on the national economy, with ordinary consumers bearing the cost through inflated electricity bills.

He alleged that more than Rs7.275 trillion had been paid to IPPs over the past five years in the form of capacity payments, despite power plants not generating electricity during the relevant period. He described the payments as an economic injustice, arguing that consumers were forced to finance idle generation capacity through their electricity bills.

According to Advocate Hasnain Ali Chauhan, the existing system has made electricity increasingly unaffordable for ordinary citizens while also undermining industrial growth, commercial activity and the broader economy.

The ILF leader further said that continuous increases in electricity, petrol and natural gas prices had triggered an unprecedented wave of inflation, forcing a significant portion of the population below or close to the poverty line. He alleged that while citizens struggled to afford basic necessities, the ruling elite continued to enjoy privileges at the public’s expense.

Criticising the present administration, which he referred to as the “Form-47 government”, Mr Chauhan claimed it had failed to address public issues, including inflation, unemployment and deteriorating living standards. He also alleged that the government was attempting to suppress dissent instead of responding to public concerns, calling such actions inconsistent with democratic values and constitutional freedoms.

Advocate Hasnain Ali Chauhan called for a transparent investigation into all agreements related to the power sector, particularly capacity payments to IPPs. He also demanded an immediate reduction in electricity, petrol and gas prices, a review of policies that have increased the financial burden on citizens, and the adoption of public welfare-oriented economic measures.

He said ensuring economic justice, protecting constitutional rights and providing meaningful relief to citizens should be the government’s foremost priority.

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