Islamabad – Foreign investors of Overseas Investors Chamber of Commerce and Industry (OICCI) operating in Pakistan have brought to the forefront critical issues regarding the energy sector in the country.
The Overseas Investors Chamber of Commerce and Industry (OICCI), representing the interests of the top 200 foreign investors in Pakistan, has called upon the National Electric Power Regulatory Authority (Nepra) to make amendments to safeguard Independent Power Producers (IPPs) from what they consider as “unfair” deductions imposed by the Central Power Purchasing Agency Guaranteed (CPPA-G).
OICCI plays a pivotal role in providing a voice for foreign investors in Pakistan. The organization regularly conducts surveys among its members to assess the business environment in the country. Survey findings are subsequently shared with key stakeholders and regulators, with the goal of facilitating necessary corrective measures to enhance the Ease of Doing Business (EODB) and promote Foreign Direct Investment (FDI) in Pakistan.
In a formal letter addressed to Chairman Nepra, Waseem Mukhtar, Abdul Aleem, the Secretary General and Chief Executive of OICCI, detailed the key concerns raised by member companies operating in the energy and power sectors during the 2023 OICCI Regulatory Survey. The issues brought to light include:
Penalization of IPPs: The letter highlights that the Rules and Regulations have been used to penalize IPPs for matters that are already covered in the power supply contracts with CPPA-G, a government entity. This includes issues like delays in startup or forced outages. OICCI suggests that the Nepra Fine Regulations and Rules should be revised to address only those instances not governed under existing contracts between the Government of Pakistan and IPPs.
Redundant Data Submissions: Member companies also raised concerns about the necessity of submitting similar information to multiple authorities, such as Nepra, the Ministry of Energy, Boiler Inspector, Electrical Inspector, Labor Department, and the Anti-Narcotics department. OICCI strongly recommends the establishment of a centralized repository to streamline data submission processes, making it accessible to all relevant officials.
OICCI has called upon the power sector regulator to take proactive measures to address these highlighted issues in order to encourage foreign direct investment in Pakistan’s energy and power sectors.
The organization has further extended an invitation to Chairman Nepra to visit the Chamber for an interactive session with its members at a mutually convenient date, with the hope of fostering a constructive dialogue on these pressing concerns. Foreign investors remain committed to contributing to the growth and development of Pakistan’s energy sector, and they see addressing these issues as a crucial step toward ensuring a favorable investment environment.
