ISLAMABAD: Outstanding payments to Independent Power Producers (IPPs) in Pakistan have reached Rs1.2 trillion, including around Rs500 billion payable to Chinese power companies, officials revealed on Wednesday during a public hearing held by the National Electric Power Regulatory Authority (Nepra).
The hearing, chaired by Nepra Chairman Waseem Mukhtar, was convened to review a petition filed by the Central Power Purchasing Agency–Guarantee (CPPA-G) seeking approval of its market operator fee for the fiscal year 2025–26. CPPA-G has sought revenue requirements of Rs2.887 billion, excluding prior-year adjustments, which rise to Rs4.664 billion when such adjustments are included.
During the proceedings, officials informed Nepra that CPPA-G’s general establishment costs are projected at Rs2.225 billion for FY2025–26, reflecting an increase of 10.75 per cent compared to the outgoing fiscal year. Salaries and benefits are expected to climb by 17 per cent to Rs2.175 billion, while pay and allowances have been proposed at Rs1.627 billion, showing a 3 per cent rise mainly due to inflation-linked adjustments. This is despite the transfer of 20 employees to the Independent System and Market Operator (ISMO) and the resignation of 26 staff members last year.
Administrative expenses have been estimated at Rs322 million, nearly 7 per cent higher than the previous year. Following the hearing, Nepra concluded the proceedings and reserved its judgment.
Story by Israr Khan
