ISLAMABAD: Pakistan has secured Rs565 billion under a Rs1.225 trillion financing package with 18 commercial banks, paving the way for long-delayed settlements with seven China-Pakistan Economic Corridor (CPEC) coal-based Independent Power Producers (IPPs).
Of the total raised, Rs660 billion has already been allocated to clear Power Holding Company (PHL) debt, while the remaining Rs565 billion is earmarked for payments to CPEC coal plants and 49 wind and solar IPPs.
The government is pressing Chinese operators for a Rs170 billion waiver in late payment interest (LPI), reducing the Rs320 billion outstanding dues to Rs150 billion in principal. Parallel talks with renewable IPPs could secure a Rs31 billion LPI waiver against Rs49 billion in principal dues.
Officials say successful negotiations would ease circular debt, restore investor confidence, and mark a critical step in power sector reform.
Story by Khalid Mustafa
