As Prime Minister Shehbaz Sharif prepares for his upcoming visit to China, Chinese Independent Power Producers (IPPs) operating under the China-Pakistan Economic Corridor (CPEC) have stepped up pressure for the clearance of their long-pending dues, which have now surged to nearly Rs475 billion.
According to a Business Recorder report, the chief executives of several Chinese IPPs have written to top Pakistani officials, with copies also shared with the Chinese Ambassador in Islamabad. The matter is expected to feature prominently in discussions during the Prime Minister’s bilateral meetings in Beijing.
In a recent letter, Wang Dongfang, CEO of Port Qasim Electric Power Company (PQEPC), flagged concerns over prolonged payment delays by the Central Power Purchasing Agency-Guaranteed (CPPA-G). The 1,320 MW Port Qasim coal-fired project, one of the largest CPEC energy ventures, has been supplying power to the national grid under government directives.
The company disclosed that its outstanding receivables had reached Rs 81 billion ($286.9 million) by the end of July 2025, with delays exceeding six months. Wang further cautioned that shareholders from China and Qatar were increasingly worried about the financial backlog and called for swift government intervention.
Citing Section 9.10 of its Power Purchase Agreement, PQEPC noted that it reserves the right to suspend operations without penalty if payments remain unsettled. The company also pointed out that its electricity tariff is cheaper than oil- and RLNG-based generation, warning that any disruption in operations could trigger defaults under loan agreements and even invoke sovereign guarantee clauses.
The CEO appealed to Finance Minister Muhammad Aurangzeb and Planning Minister Ahsan Iqbal to facilitate arrangements that would enable CPPA-G to release pending payments.
When approached, a senior government official said that payment capacity remains tied to fiscal constraints, though ongoing payments are being managed through an Escrow Account. The official confirmed that the government has earmarked Rs5 billion per month for partial clearance of dues to Chinese CPEC IPPs.
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