CEOs of Chinese energy projects under the China-Pakistan Economic Corridor (CPEC) have intensified their demands for the clearance of pending dues totaling Rs475 billion, ahead of Prime Minister Shehbaz Sharif’s official visit to China.
The top executives highlighted that delayed payments pose serious risks to the operational continuity of their projects and could trigger shareholder concerns, potentially affecting investor confidence in Pakistan’s energy sector.
According to industry sources, multiple independent power plants (IPPs) have expressed concerns over accumulated receivables from the government, urging timely settlement to prevent potential operational suspensions. The pending dues include payments for energy supplied under long-term agreements.
“The delay in clearing dues not only jeopardizes daily operations but also raises questions about Pakistan’s commitment to CPEC energy projects,” a senior executive noted. “Prompt settlement is crucial to maintain investor trust and ensure uninterrupted energy supply.”
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The IPP CEOs have requested the Ministry of Energy and relevant financial authorities to prioritize the release of funds before the Prime Minister’s China visit, emphasizing that unresolved payment issues could impact bilateral relations and future energy investments.
Market analysts warn that continued delays may strain Pakistan’s energy sector liquidity, as several projects rely heavily on timely government payments to service debt and operational costs.
The government, while acknowledging the dues issue, has assured that steps are underway to expedite the clearance process, with officials expected to discuss a roadmap for payment disbursement during upcoming high-level meetings with Chinese stakeholders.
