ISLAMABAD: A major financial dispute worth Rs23 billion between the National Grid Company (NGC) and the Pak Matiari–Lahore Transmission Company (PMLTC) has been escalated to the China–Pakistan Economic Corridor (CPEC) Review Committee, headed by Minister for Planning, Development and Special Initiatives Ahsan Iqbal.
According to sources, Chinese-owned PMLTC has reported that NGC—formerly National Transmission and Dispatch Company (NTDC)—is refusing to pay Provincial Sales Tax on transmission service invoices, despite the levy becoming legally applicable in July 2023. The tax is contractually defined as a pass-through cost under the Transmission Service Agreement (TSA), but NGC’s refusal has resulted in unpaid liabilities exceeding Rs22.8 billion, owed to the Punjab Revenue Authority and Sindh Revenue Board.
PMLTC maintains that the non-payment exposes it to penalties, default surcharges, and a severe compliance and cash-flow crisis. The company has further sought a technical correction in “Clause (12A) of Part-IV of the Second Schedule to the Income Tax Ordinance, 2001,” asking for the word to to be replaced with by to correctly state: “(12A) the provision of Section 150 shall not apply to dividends paid by transmission line project under the Transmission Line Policy, 2015.”
In parallel developments, sources confirmed that the Saindak (SiahDiq) Copper Mine project has been added to the CPEC portfolio under the Joint Working Group (JWG) on Industrial Cooperation, with updated progress shared by the Petroleum Division.
Meanwhile, the Chinese Embassy has sent a draft protocol—via the Ministry of Foreign Affairs—for establishing the China–Pakistan Border Port Management Cooperation Committee and has requested Pakistan to confirm lead authorities and share feedback.
Regarding utility provision for M/s Challenge Fashion, the Planning Minister chaired a follow-up meeting on October 23, 2025, expressing serious concern over persistent delays affecting a priority investment project. The Board of Investment (BoI) was instructed to immediately move a summary to the Federal Cabinet for approval of general utility provision criteria for Special Economic Zones (SEZs), potentially covering export commitments, job creation, and technology transfer.
Gwadar Free Zone Foreign Currency Pilot:
During the 83rd CPEC progress review meeting held on October 8, 2025, the State Bank of Pakistan (SBP) was directed to notify 50% retention of export proceeds in the Gwadar Free Zone by September 23, 2025. For long-term resolution, the CPEC Secretariat and Ministry of Planning were instructed to form a committee—now notified under the Ministry of Maritime Affairs (MoMA)—to review legal amendments. MoMA has since proposed restructuring the committee under either the Ministry of Finance or the Ministry of Planning for more effective oversight.
Story by Mushtaq Ghumman
