The government is considering paying off nearly Rs. 550 billion ($1.98 billion) dues owed to Chinese Independent Power Producers (IPPs) before the 13th Joint Coordination Committee (JCC) meeting of the China-Pakistan Economic Corridor (CPEC).
Chinese authorities insist on Prime Minister Sharif’s visit after the 13th JCC meeting to resolve outstanding issues and finalize the cooperation roadmap under CPEC-2. The focus is on resolving pending matters, especially scaling down outstanding dues to Chinese IPPs and ensuring future timely payments, local media reported on Wednesday.
Chinese power dues amount to nearly Rs. 550 billion, with disruptions even in timely payments under the revolving fund in recent months. Chinese financial institutions seek confidence-building measures for further cooperation.
The delay in payments and Chinese demands for special energy tariffs for Special Economic Zones (SEZs) have stalled major projects and investments. Planning Minister Ahsan Iqbal is meeting relevant stakeholders to address these issues, including the Cabinet Committee on Chinese Investment Projects (CCoCIP) to expedite the process on high priority.
Ahsan Iqbal also engaged with Chinese and Pakistani businesses, with talks mainly focused on industrial cooperation and business partnerships through CPEC-2.
