The first round of IPP negotiations has concluded, resulting in the termination of five contracts through coercive measures—though labeled as mutually agreed upon. This approach has demonized investors and stigmatized profit-making, undermining the sanctity of contracts. The outcome so far is a minimal reduction in tariffs—a mere half a rupee.

While there may be short-term celebrations, the long-term consequences could be severe. The message being sent is clear: we welcome investors with red carpets initially, but when challenges arise, they are punished unilaterally, with no accountability for the counter party.

The unsustainability of the power sector largely stems from poor planning by government entities and the regulator, NEPRA. By 2016, it was apparent that 9,000 MW would be added to the South to meet demand in the North of the country. Yet, the infrastructure needed to evacuate this power to load centers is still missing.

Consumers are now paying the price for the negligence of public sector entities such as NTDC, PPIB, CPPA-G, and NEPRA.

In 2016, it was also known that imported coal (3,300MW), nuclear (2,400MW), Thar coal (2,640MW), and........

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