KARACHI: Port Qasim Electric Power Company Private Limited (PQEPC) has formally requested Finance Minister Senator Muhammad Aurangzeb to facilitate the release of funds to the Central Power Purchasing Agency–Guaranteed (CPPA-G) for payment to Chinese Independent Power Producers (IPPs), BR reported.
The outstanding dues to Chinese IPPs currently stand at approximately Rs 480 billion, with part of this amount expected to be cleared before Prime Minister Shehbaz Sharif’s upcoming visit to Beijing, aiming to assure Chinese stakeholders.
In a letter to the finance minister, PQEPC’s CEO, Wang Dongfang, highlighted the company’s consistent delivery of reliable and cost-effective electricity through the 1,320 MW Port Qasim Coal-Fired Power Project, a part of the China-Pakistan Economic Corridor (CPEC), even during the COVID-19 pandemic. He further emphasized the project’s role in addressing circular debt issues.
As of June 30, 2025, the Port Qasim project’s total outstanding dues amounted to Rs 87.5 billion (approximately $308.2 million), with delays exceeding six months. Wang warned that these mounting dues had led to significant dissatisfaction among shareholders from China and Qatar, urging immediate government action to prevent further delays.
He noted that PQEPC is legally entitled to suspend operations under the Power Purchase Agreement (PPA) due to non-payment, and failure to resolve the issue could result in a breach of the Loan Agreement and default on Pakistan’s Sovereign Guarantee, which could harm the country’s financial credibility.
Wang has called on the Finance Minister to coordinate with the relevant authorities to expedite financial support to CPPA-G, ensuring timely payment to the Port Qasim project.
The Finance Ministry usually releases Rs5 billion per month to CPPA-G for energy payments to Chinese IPPs through an escrow account.
