Outstanding payments to Independent Power Producers in Pakistan have climbed to Rs. 1.2 trillion, including Rs. 500 billion owed to Chinese power producers, officials told a public hearing held by the National Electric Power Regulatory Authority.
The disclosure was made during a hearing chaired by NEPRA Chairman Waseem Mukhtar to review a petition filed by the Central Power Purchasing Agency-Guarantee for the determination of market operator fees for the fiscal year 2025–26.
CPPA-G has sought revenue requirements of Rs. 2.887 billion for FY26, excluding prior year adjustments. Including these adjustments, the total requirement rises to Rs. 4.664 billion.
Officials informed the regulator that CPPA-G’s general establishment cost for the coming year is estimated at Rs. 2.225 billion, reflecting an increase of 10.75 percent compared to FY25.
Salaries and benefits are projected to rise by 17 percent to Rs. 2.175 billion. Pay and allowances alone are proposed at Rs. 1.627 billion, showing a 3 percent increase, mainly due to inflation-related adjustments.
This is despite the transfer of 20 employees to the Independent System and Market Operation entity and the resignation of 26 employees during the previous year.
Administrative expenses are expected to reach Rs. 322 million, nearly 7 percent higher than last year, officials said. NEPRA concluded the hearing after reviewing the petition and has reserved its judgment on the matter.
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