ISLAMABAD: As Prime Minister Shehbaz Sharif’s visit to China approaches, Chinese CPEC Independent Power Producers (IPPs) have intensified calls for the clearance of their outstanding receivables, which total around Rs475 billion.
According to a news report, CEOs of the IPPs have written to Pakistani officials, with copies shared with the Chinese Ambassador to Pakistan, who is coordinating with senior Pakistani authorities to finalise the Prime Minister’s agenda for bilateral meetings.
In a letter, Wang Dongfang, CEO of Port Qasim Electric Power Company (PQEPC), highlighted delays in tariff payments by the Central Power Purchasing Agency-Guaranteed (CPPA-G). The 1,320 MW Port Qasim Coal-Fired Power Project, a major CPEC energy venture, has supplied electricity to the national grid under government guidance.
The letter stated that PQEPC’s outstanding receivables had reached Rs81 billion ($286.94 million) as of July 31, 2025, with delays exceeding six months. Wang warned that shareholders from China and Qatar had expressed concerns over the backlog and urged urgent action.
PQEPC noted that under the Power Purchase Agreement (Section 9.10), it could suspend operations without liability for Liquidated Damages if payments are not made. The company added that its Energy Purchase Price tariff is lower than oil- and RLNG-based plants, and operational suspension could trigger defaults under loan agreements and the government’s sovereign guarantee.
The CEO asked Finance Minister Muhammad Aurangzeb and Planning Minister Ahsan Iqbal to coordinate with relevant authorities to arrange funding for CPPA-G to clear the dues.
An official, when contacted, said payments would depend on the government’s fiscal capacity, though energy payments are currently being made through an Escrow Account. The government has allocated Rs5 billion per month for payments to Chinese CPEC IPPs.
