Prime Minister (PM) Shehbaz Sharif is reportedly engaged in resolving the issues of Chinese companies working in Pakistan, including the companies working in the power sector projects under the China-Pakistan Economic Corridor (CPEC), as reported by Business Recorder.
The report stated that the Prime Minister’s Office (PMO) has called a meeting of the related ministries today to present a synopsis, a comprehensive brief, a copy of presentations, and talking points to the PM, who has come into action after a recent meeting between the Minister for Planning, Development and Special Initiatives, Ahsan Iqbal, and the Chinese companies.
One of the several issues raised by the companies in the meeting was the delayed payments by the Central Power Purchasing Agency (CPPA-G) and the National Transmission and Despatch Company (NTDC). They complained that delayed payments were forcing them to shut down their plants and were worsening their liquidity situation due to the increase in fuel prices.
In response, the Power Division informed the attendees that 86 percent of the payments had been made, and the government was trying to make further payments to the independent power producers (IPPs). It also issued directives to make the outstanding payments to the companies.
However, some sources claimed that the payables to the Chinese IPPs have reached Rs. 350 billion.
Another key issue raised was the delay in the opening of a revolving account for CPEC IPPs. It was decided in the meeting that the Finance and Power Divisions would soon make the final decision in this regard as they have already been discussing the matter.
Furthermore, some companies highlighted an increase in sales tax from zero percent to 17 percent in the Supplementary Finance Act 2021- 2022. Minister Iqbal took note of the issue and directed the Power Division to discuss it with the Federal Board of Revenue (FBR).
Several other issues were raised by different companies during the meeting. The minister took note of them, instructed the concerned authorities and ministries to ensure early resolutions to them, and assured the companies of full support in this regard.
