Govt to Pay Off $1.4 Billion in Accounts Payable to Chinese CPEC Investors

The government is aiming to partially pay off about $1.4 billion in accounts payable to Chinese companies that invested in or are working on projects linked to the China-Pakistan Economic Corridor.

According to a report by a national daily, the government is “working hard to clear at least some of the payments at the earliest”.

However, the Chinese contractors working on the Dasu Hydropower Project are to resume construction work after the terrorist attack that occurred two months ago despite strong security measurements.

The official said that the government plans to develop a revolving fund to ensure payments to contractors under the China-Pakistan Economic Corridor (CPEC) through the recovery of consumer bills, but it has not been able to do so.

He added that there is no coal shortage supply that any project was struggling with.

An official close to the Special Assistant to the Prime Minister on CPEC Affairs, Khalid Mansoor, said, “We are working very hard for some payments within this month or early next month”.

“The Chinese companies are very accommodating and there is nothing to suggest that we are on the verge of default,” he added.

Mansoor said in a meeting of the parliament last week that the CPEC’s issues include payments to independent power producers, the development of a revolving fund for automatic payments, and outstanding dues.

He disclosed that the government is considering setting up an Investment Facilitation Centre that will provide a one-window facility to Chinese investors.

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