China has urged Pakistan to settle about $220 million in overdue payments owed to United Energy Pakistan (UEP), signaling mounting pressure on Islamabad to clear liabilities to foreign investors amid persistent liquidity strains in the energy sector.
The request was conveyed through diplomatic channels after Pakistan’s ambassador in Beijing sent an urgent communication highlighting that the dues relate to gas supplied by UEP to Sui Southern Gas Company, which currently receives about 260–270 million cubic feet per day from the company, according to a report by a national daily.
Liquidity constraints linked to the delayed payments have recently forced UEP to lay off staff, the report added.
Pakistan’s Special Investment Facilitation Council (SIFC) has also called for an immediate resolution of the outstanding amount, warning that delays risk undermining confidence among foreign investors at a time when the country is seeking to attract external capital into its energy sector.
SSGC has said its ability to clear the dues is constrained by pending tax refunds worth billions of rupees from the Federal Board of Revenue, which it argues must be released before payments to UEP can be settled.
UEP, a subsidiary of United Energy Group, acquired assets of BP Pakistan in 2011 as part of its expansion into Pakistan’s upstream sector. The company later secured a $5 billion credit line from China Development Bank to support local operations and acquisitions, and in 2018 purchased gas fields from OMV Pakistan for $192 million, further expanding its footprint.
UEP has since become one of the largest foreign exploration and production companies operating in Pakistan, with gas assets spread across multiple districts in Sindh and offshore exploration blocks in the Arabian Sea.
Officials said resolving the payment dispute quickly is critical to sustaining UEP’s operations and preserving investor confidence in Pakistan’s energy sector, which continues to face mounting financial and regulatory pressures.
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Pakistan greatest achievement
Punishing solar electricity producers
Punishing the educated seeking jobs
Punishing anyone not in military
Punishing everyone but the elite with high taxes
Punishing low level investors
Punishing developing projects
This is what democracy under Lumber 1 is
If government really cared about long term stability they would get rid of IPPs , promote solar , wind and electric vehicles
A fair demand from China. Not everything China demands from Pakistan is published in the media.