The government is contemplating settling nearly Rs. 550 billion ($1.98 billion) dues owed to Chinese Independent Power Producers (IPPs) ahead of the 13th Joint Coordination Committee (JCC) meeting of the China-Pakistan Economic Corridor (CPEC).
Local media reported on Wednesday that Chinese authorities are urging Prime Minister Sharif’s visit after the 13th JCC meeting to address outstanding issues and finalize the cooperation roadmap under CPEC-2. The emphasis is on resolving pending matters, particularly reducing outstanding dues to Chinese IPPs and ensuring timely payments in the future.
Chinese power dues total nearly Rs. 550 billion, with disruptions observed even in timely payments under the revolving fund in recent months. Chinese financial institutions are seeking confidence-building measures for further cooperation.
Major projects and investments have been stalled due to delays in payments and Chinese requests for special energy tariffs for Special Economic Zones (SEZs). Planning Minister Ahsan Iqbal is convening meetings with relevant stakeholders, including the Cabinet Committee on Chinese Investment Projects (CCoCIP), to accelerate the process as a high priority.
Ahsan Iqbal has also been in discussions with Chinese and Pakistani businesses, with a primary focus on industrial cooperation and business partnerships through CPEC-2.
