ISLAMABAD: The Pak-Matiari Lahore Transmission Company (PMLTC) has formally requested the clearance of overdue payments amounting to Rs60.752 billion from the Central Power Purchasing Agency-G (CPPA-G) and the National Grid Company (NGC) under the Transmission Services Agreement (TSA).
In a letter addressed to the Managing Director of NGC, PMLTC Chairman and CEO Xiong Feng referred to the legally binding TSA signed on May 14, 2018. Citing Section 9.5 of the agreement, he emphasised that the purchaser is required to settle invoiced amounts within 30 days of receipt.
According to PMLTC, despite this contractual obligation, payments remain significantly delayed. The company noted that NGC is still clearing sales tax liabilities for the period July 2023 to January 2025. It further stated that only partial payment has been made against the Transmission Service Provider (TSP) invoice for August 2025, which became overdue on October 1, 2025. Invoices from September to December 2025 and January 2026 also remain unpaid.
As of February 23, 2026, the total outstanding amount, including interest on delayed payments and sales tax, has reached Rs69.739 billion, of which Rs60.752 billion is overdue.
PMLTC underscored that timely payment of transmission service charges is critical for meeting ongoing operations and maintenance (O&M) expenses essential for the stable functioning of the high-voltage direct current (HVDC) transmission project.
The company also informed authorities that the next installment of principal and interest repayment to lenders is due on April 15, 2026. In light of the cash flow constraints and the time required for State Bank approval to convert funds into US dollars, PMLTC has requested a minimum daily payment of Rs1 billion (excluding sales tax) from February 23 to March 31, 2026, to meet its debt servicing obligations.
The transmission company has urged NGC and CPPA-G to expedite settlement of outstanding invoices and strictly adhere to the payment schedule outlined in the TSA to prevent any disruption to project operations.
Story by Mushtaq Ghumman
