Pakistan’s outstanding payments to China-Pakistan Economic Corridor (CPEC) power projects climbed to Rs. 423 billion by the end of FY2025-26.
The unresolved dues stem from disagreements over nearly Rs. 170 billion in accumulated late payment surcharge, which Chinese lenders and independent power producers (IPPs) are unwilling to waive. The government also needs to pay Rs. 260 billion in outstanding energy purchase payments, reported Express Tribune.
At the same time, Islamabad is pursuing up to $10 billion in low-cost foreign financing to replace expensive power-sector debt and reduce electricity tariffs. It would refinance costly debt taken for CPEC power projects.
Electricity consumers are currently paying for about $30.6 billion in power producer debt over the next 13 years, while an additional $5.7 billion circular debt surcharge is being recovered through electricity bills.
Debt servicing alone now accounts for roughly one-third of Pakistan’s average electricity tariff.
Among the largest outstanding payments are Rs. 85 billion owed to the Sahiwal coal power plant, Rs. 76 billion to Port Qasim Power Plant, Rs. 64 billion to Hub Power Plant, Rs. 54 billion to Thar Coal Block-I Power Generation Company, Rs. 43 billion to Engro Powergen Thar, Rs. 28 billion to the Matiari-Lahore Transmission Line, Rs. 17.5 billion to Karot Power Company and Rs. 11.5 billion to Thar Energy Limited.
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