As Prime Minister Shehbaz Sharif prepares for his upcoming visit to China, Chinese Independent Power Producers (IPPs) operating under the China-Pakistan Economic Corridor (CPEC) have stepped up pressure on Islamabad to clear their ballooning dues, which have now reached an estimated Rs. 475 billion.
According to Business Recorder, the CEOs of several Chinese CPEC IPPs have written directly to senior Pakistani officials, with copies also sent to the Chinese Ambassador in Islamabad. The Ambassador is said to be actively engaging with government authorities to ensure the matter is addressed before the Prime Minister’s high-level meetings in Beijing.
One of the most forceful appeals came from Wang Dongfang, CEO of Port Qasim Electric Power Company (PQEPC), which operates the 1,320 MW Port Qasim Coal-Fired Power Project—one of CPEC’s flagship energy ventures. In his letter, Wang warned of growing risks due to delayed tariff payments by the Central Power Purchasing Agency-Guaranteed (CPPA-G).
As of July 31, 2025, outstanding dues owed to PQEPC had surged to Rs. 81 billion ($286.94 million), with some payments pending for more than six months. Wang cautioned that frustration among shareholders and sponsors, including stakeholders from China and Qatar, is intensifying, with demands for urgent remedial action.
While acknowledging the Pakistani government’s efforts to arrange partial payments, Wang stressed that the backlog had reached a “critical point.” He reminded officials that under Section 9.10 of the Power Purchase Agreement (PPA), PQEPC has the contractual right to suspend plant operations without incurring liability for Liquidated Damages (LDs) if payments are not made. Such a step, he warned, would have serious consequences for Pakistan’s already fragile power sector.
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“Suspension of operations would result in a lose-lose outcome for both sides,” Wang wrote, adding that regular payments were vital for sustainable power generation and to avoid defaults under financing agreements backed by Pakistan’s sovereign guarantees.
He also pointed out that PQEPC’s Energy Purchase Price (EPP) tariff remains more competitive than oil- and RLNG-based power plants, underlining its importance in Pakistan’s energy mix.