ISLAMABAD: Chinese power projects established under the China-Pakistan Economic Corridor (CPEC) framework are reportedly awaiting payments of outstanding dues amounting to Rs498 billion from the Central Power Purchasing Agency-Guarantee (CPPA-G), which is unable to clear the liabilities due to financial constraints, well-informed sources told Business Recorder.
Representatives of the power companies have repeatedly reminded CPPA-G of its payment obligations through official correspondence, while the issue has, on some occasions, reached the office of the Prime Minister, the sources added.
Recently, Chief Executive Officer (CEO) of Port Qasim Electric Power Company (PQEPC), Wang Dongfeng, wrote to the Ministers for Finance and Revenue, Planning, Development and Special Initiatives, and Energy (Power Division), seeking their intervention to ensure payment of the company’s outstanding dues.
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PQEPC, which operates a 1,320-megawatt (MW) coal-fired power plant under CPEC, has sought urgent financial support from the government to facilitate the settlement of Rs79 billion in overdue electricity payments, warning that prolonged delays could threaten sustainable power generation and trigger defaults under loan agreements and the government’s sovereign guarantee.
According to the company’s letter dated September 29, 2026, its outstanding receivables had reached Rs79 billion, equivalent to $285.4 million, as of that date. Payments had been delayed for more than six months, with the company warning that the amount could increase further if the situation remained unresolved.
The company’s Chinese and Qatari shareholders and sponsors have reportedly expressed significant discontent over the payment delays and called for immediate measures to reduce the outstanding liabilities.
PQEPC has requested the government to coordinate with the relevant authorities and provide financial support to CPPA-G to enable it to clear the overdue payments at the earliest.
The company acknowledged the efforts of the government and CPPA-G to arrange funds and make electricity tariff payments to independent power producers (IPPs). However, it maintained that prolonged delays had placed the Port Qasim project in a critical financial position.
Highlighting its cost advantages, PQEPC stated that its energy purchase price (EPP) tariff was comparatively lower than that of oil- and re-gasified liquefied natural gas (RLNG)-based power plants. It argued that timely settlement of its receivables was essential to sustain power generation and avert potential defaults under its loan agreements and the government’s sovereign guarantee.
The 1,320-MW Port Qasim coal-fired power plant is among the major power generation projects established under CPEC.
Meanwhile, outstanding receivables of the Sahiwal coal-fired power plant have also reportedly reached around Rs80 billion, the sources said, adding that the company has been approaching the government from time to time for the clearance of its dues.
M/s China Huaneng, the Chinese company that owns and operates the 1,320-MW Sahiwal coal-fired power plant, has reportedly accused Pakistani authorities of pressuring it to enter into a “give-and-take” arrangement as a condition for clearing long-pending capacity payment deductions.
The company has sought the intervention of the Prime Minister’s Office over a longstanding dispute with CPPA-G, which has reportedly remained unresolved for approximately four years despite repeated attempts by the company to have the matter addressed through the relevant institutional process.
Copyright Business Recorder, 2026