ISLAMABAD: Chinese-owned United Energy Pakistan Limited (UEP), one of Pakistan’s largest foreign oil and gas producers, is facing a severe financial crisis due to nearly $300 million in unpaid receivables and prolonged delays in tax refunds, sources told Profit. The cash-flow crunch has already forced the company to lay off around 70 employees and threatens its operational sustainability.
A subsidiary of Hong Kong-based United Energy Group, UEP operates major upstream oil and gas assets in Sindh and also runs a 99 MW wind power project at Jhimpir under CPEC. Despite earlier intervention by the Special Investment Facilitation Council, which secured partial payments of about $100 million, liquidity pressures persist.
Industry sources warn that continued delays could disrupt production, stall future exploration, undermine foreign investor confidence, and pose risks to Pakistan’s long-term energy security.
