Chinese power projects established under the China-Pakistan Economic Corridor (CPEC) are awaiting Rs. 498 billion in outstanding payments from the Central Power Purchasing Agency-Guarantee (CPPA-G).
Power companies have repeatedly written to CPPA-G seeking payment of their overdue receivables, with the issue reaching the Prime Minister’s Office on several occasions, the sources said.
The latest request for government intervention came from Port Qasim Electric Power Company (PQEPC), whose Chief Executive Officer Wang Dongfeng wrote to the ministers for finance, planning, and energy, seeking assistance in recovering the company’s outstanding payments.
Port Qasim power plant awaits Rs. 79 billion
PQEPC operates a 1,320-megawatt coal-fired power plant established under CPEC. In a letter dated September 29, 2026, the company reported that its outstanding receivables had reached Rs. 79 billion, equivalent to $285.4 million.
The payments had remained overdue for more than six months, and the company warned that its receivables could increase further if the delays continued.
PQEPC sought urgent government support to help CPPA-G clear the outstanding amount, warning that prolonged nonpayment could undermine the project’s financial viability, threaten the sustainability of electricity generation, and trigger defaults under its loan agreements and the government’s sovereign guarantee.
The company’s Chinese and Qatari shareholders and sponsors have also reportedly expressed serious concern over the delayed payments and called for immediate action to reduce the outstanding liabilities.
While acknowledging efforts by the government and CPPA-G to arrange funding and make payments to independent power producers (IPPs), PQEPC said the prolonged delays had placed the Port Qasim project under considerable financial pressure.
The company also highlighted its comparatively lower energy purchase price (EPP) tariff than that of oil-fired and re-gasified liquefied natural gas (RLNG)-based power plants. It argued that clearing its receivables on time was necessary to sustain generation and avoid potential defaults on its loans and obligations backed by the government’s sovereign guarantee.
The payment difficulties extend beyond Port Qasim. Outstanding receivables of the 1,320-MW Sahiwal coal-fired power plant have reportedly reached approximately Rs. 80 billion, according to the sources.
China Huaneng, the Chinese company that owns and operates the plant, has repeatedly approached the government to secure payment of its dues.
The company has reportedly accused Pakistani authorities of pressuring it to enter into a “give-and-take” arrangement as a condition for clearing long-pending deductions from capacity payments.
China Huaneng has also sought intervention from the Prime Minister’s Office over its longstanding dispute with CPPA-G. The matter has reportedly remained unresolved for around four years despite repeated attempts by the company to obtain a resolution through the relevant institutional channels.
Payment delays deepen financial pressure
The outstanding payments have become a major concern for Chinese-backed power projects operating under CPEC, with companies seeking government intervention to recover overdue amounts and maintain financial stability.
Port Qasim and Sahiwal alone account for approximately Rs. 159 billion in reported receivables. The broader outstanding amount owed to CPEC power projects by CPPA-G stands at Rs. 498 billion, according to the sources cited by *Business Recorder*.
The companies’ warnings highlight the financial risks associated with prolonged payment delays, including pressure on project operations, loan repayment obligations, and government-backed guarantees. However, the available information does not establish that either plant has defaulted on its loans or suspended electricity generation.
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