BEIJING: Chinese independent power producers (IPPs) under the China-Pakistan Economic Corridor (CPEC) are facing significant payment delays in Pakistan, even as they continue to supply electricity reliably to the national grid.
Sources report that the companies’ outstanding dues have now surged to nearly Rs500 billion ($1.72 billion). Of this, Rs450 billion ($1.5 billion) is owed by the Central Power Purchasing Agency (Guaranteed), which has been unable to clear payments due to Pakistan’s persistent financial and foreign exchange crises.
According to the details, the chief executives of Port Qasim, China Hub, Sahiwal coal power plants, and several wind energy projects have repeatedly written to government authorities demanding payment, but their appeals have largely been ignored.
In a recent development, Xiong Feng, President and CEO of the Pak Matiari–Lahore Transmission Company (PMLTC), conveyed strong reservations in a letter addressed to the Managing Director of the National Grid Company (NGC). He cited the Transmission Services Agreement (TSA) signed on May 14, 2018, which under Clause 9.5 requires that invoices be settled within 30 days.
“Despite these clear terms, NGC has not paid the December 2024 invoice, which became due on January 31,” the letter stated. “Invoices issued from January to May 2025 also remain unpaid.”
PMLTC’s receivables have now risen to Rs55.071 billion (excluding sales tax), with Rs47.076 billion comprising long-outstanding arrears and delayed payment surcharges.
Xiong emphasized that timely payments are critical to cover the operating costs necessary for the uninterrupted performance of the High-Voltage Direct Current (HVDC) project. “Delays in payments are causing us financial losses and other adverse impacts,” he warned.
He called on NGC to immediately implement corrective measures to protect the company’s financial stability and prevent further losses.
The letter further stressed that the current slow pace of daily payments is unacceptable, urging authorities to accelerate disbursements to clear pending invoices promptly.
Similarly, the National Grid Company (formerly NTDC) has failed to settle dues owed to the 660 MW Pak Matiari–Lahore Transmission Company on time.
Sources familiar with the matter indicated that the Government of Pakistan is considering releasing partial payments to the Chinese IPPs ahead of Prime Minister Shehbaz Sharif’s anticipated visit to China in August or September 2025. So far, Rs5 billion has been paid to Chinese power companies through an escrow account established after prolonged negotiations.
Chinese companies have cautioned that without urgent government action, the continuity of electricity supply under CPEC energy projects could be at risk.
