ISLAMABAD: Port Qasim Electric Power Company (PQEPC) has urged Finance Minister Muhammad Aurangzeb to intervene in clearing overdue payments amounting to Rs87.5 billion (approximately \$308.2 million) as of June 30, 2025, warning that delays now exceed six months and risk spiraling further.
In a formal communication, PQEPC CEO Wang Min highlighted the growing dissatisfaction of Chinese and Qatari shareholders over the payment backlog and cautioned that the company reserves the legal right to suspend operations under Section 9.10 of the Power Purchase Agreement (PPA) without incurring any penalties.
Wang noted that the Port Qasim plant, due to its cost-effective Energy Purchase Price (EPP) compared to oil and RLNG-based power projects, plays a significant role in mitigating Pakistan’s circular debt. He stressed that a potential shutdown would be detrimental to both the company and the government.
The CEO also warned of serious consequences, including a possible breach of the project’s Loan Agreement and default on Pakistan’s sovereign guarantee—factors that could erode investor confidence and damage the country’s financial credibility.
To avoid such outcomes, Wang requested immediate coordination from the Finance Ministry to ensure urgent disbursement of funds to the Central Power Purchasing Agency-Guarantee (CPPA-G). Currently, the ministry channels Rs5 billion monthly via an escrow account jointly managed with Chinese authorities to support energy payments to Chinese IPPs.
Story by Mushtaq Ghumman
