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Pakistan·Trade & Economy

Pakistan's independent power producers found overcharging consumers through inflated coal costs

Wednesday, 26 August 2026, 06:33 · 1 min read

Pakistan's independent power producers (IPPs) — private electricity generators that sell power to the national grid — have been overcharging consumers by securing far smaller discounts on imported coal than those available in competitive markets, with the extra costs passed on through monthly fuel price adjustments. The issue came to light after a state-owned plant in Jamshoro secured a discount of $7.12 per tonne from a coal supplier, compared to discounts of as little as $0.20 to $0.50 per tonne in contracts held by some IPPs, including the Port Qasim Electric Power Company, which was also found to have withheld information from regulators and limited its coal tender to Chinese bidders only. Pakistan's power regulator Nepra and the federal power ministry have both flagged the inefficiencies, with new procurement guidelines issued that officials say could save up to Rs380 million annually across the country's roughly 5,280 megawatts of coal-fired generating capacity.

Sources
DawnIndepe­ndent power producers found overcharging users through costly coal procurement ↗︎
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