ISLAMABAD: Chinese power projects established under the China-Pakistan Economic Corridor (CPEC) framework are reportedly awaiting Rs498 billion in outstanding payments from the Central Power Purchasing Agency-Guarantee (CPPA-G), which is facing financial constraints in settling the liabilities, according to well-informed sources.
The payment delays have prompted repeated reminders from power companies through official correspondence, with the issue reportedly reaching the Prime Minister’s Office on several occasions.
Recently, Port Qasim Electric Power Company (PQEPC) Chief Executive Officer Wang Dongfeng wrote to the ministers for Finance and Revenue, Planning, Development and Special Initiatives, and Energy (Power Division), seeking urgent intervention to ensure clearance of the company’s outstanding receivables.
PQEPC operates a 1,320-megawatt (MW) coal-fired power plant under CPEC. In a letter dated September 29, 2026, the company reported that its overdue electricity payments had reached Rs79 billion, equivalent to $285.4 million, with payments delayed for more than six months.
The company warned that continued delays could further increase its receivables, threaten the sustainability of power generation and trigger defaults under its loan agreements and the government’s sovereign guarantee.
According to sources, PQEPC’s Chinese and Qatari shareholders and sponsors have expressed serious concern over the prolonged payment delays and called for immediate measures to reduce the outstanding liabilities.
The company has urged the government to coordinate with relevant authorities and provide financial support to CPPA-G to facilitate the early settlement of overdue payments.
While acknowledging government and CPPA-G efforts to arrange funds for electricity tariff payments to independent power producers (IPPs), PQEPC maintained that the continued accumulation of unpaid dues had placed the project in a critical financial position.
The company also highlighted its comparatively lower energy purchase price (EPP) tariff than that of oil- and re-gasified liquefied natural gas (RLNG)-based power plants. It argued that timely payment of its receivables was essential to sustain operations and avoid potential defaults under its financing arrangements and the government’s sovereign guarantee.
Meanwhile, outstanding receivables of the 1,320-MW Sahiwal coal-fired power plant have reportedly reached approximately Rs80 billion, sources said. The plant’s owner and operator, China Huaneng, has repeatedly approached the government for the settlement of its outstanding dues.
China Huaneng has reportedly accused Pakistani authorities of pressuring the company to enter into a “give-and-take” arrangement as a condition for clearing long-pending capacity payment deductions.
The company has also sought the Prime Minister’s intervention in its longstanding dispute with CPPA-G, which has reportedly remained unresolved for around four years despite repeated attempts to resolve the matter through the relevant institutional channels.
The mounting receivables highlight the financial pressures facing CPEC power projects amid delays in payments from the power-sector purchasing agency. Continued non-payment could increase financial risks for project sponsors, complicate debt servicing and create further challenges for maintaining reliable electricity generation.
Story by Mushtaq Ghumman
