Govt, JI reach agreement to lower electricity prices, task force to review IPPs contracts

The final round of negotiations between the government and Jamaat-e-Islami (JI) concluded successfully on Thursday, with both sides signing an agreement to reduce electricity prices and form a task force to review Independent Power Producers (IPPs) contracts.

Following the agreement, JI leader Hafiz Naeemur Rehman announced the postponement of the sit-in.

During a speech to the sit-in participants, JI Deputy Chief Liaquat Baloch praised the party’s workers, stating, “Our members have made democratic history. Despite numerous obstacles and arrests, we persevered, and our demands were heard.”

Baloch explained that the government representatives, including Federal Ministers Mohsin Naqvi and Attaullah Tarar, approached them for negotiations. “They came to our sit-in, met with our leader, and expressed their willingness to talk,” he said. “This sit-in was for a national agenda and national demands.”

Negotiations were held at the Rawalpindi Commissioner’s office, with committees formed by both JI and Prime Minister Shehbaz Sharif. After initial talks, discussions resumed, leading to the agreement.

Baloch detailed the agreement, stating, “It was agreed that the IPPs issue is a serious economic concern. The prime minister and the federal government are committed to reviewing IPPs contracts, with a task force to be established for a thorough examination.”

The task force, expected to complete its work within a month, will include representatives from WAPDA and FPCCI, and will be empowered to recommend measures for reducing electricity tariffs. “The goal is to provide relief to the public by reducing the per-unit cost of electricity and linking payments directly to electricity usage,” Baloch added.

In addition, the task force will evaluate power market designs, assess IPPs setups, and propose solutions to manage excess capacity. Recommendations for the task force’s operations will be closely monitored to ensure implementation.

Baloch highlighted that this agreement also includes a commitment to reform the tax system for landowners, aiming to reduce dependence on IMF loans. “We have also agreed to simplify the tax system for traders and reduce the tax burden on salaried individuals.”

The agreement, signed by Mohsin Naqvi and JI representatives, marks a significant step towards economic relief. “Electricity rates will be lowered, and measures will be taken to ensure a reduction in per-unit costs going forward,” Baloch affirmed.

Interior Minister Naqvi echoed these sentiments, stating, “Electricity prices will decrease soon, as we have promised.” He thanked JI, particularly Hafiz Naeem, for their disciplined approach during the negotiations.

Naqvi concluded by stating that all efforts were made under the prime minister’s directives, with the goal of maintaining peace and stability in Pakistan.