Chinese power projects operating under the China-Pakistan Economic Corridor (CPEC) are awaiting approximately Rs498 billion in outstanding payments from the Central Power Purchasing Agency-Guarantee (CPPA-G), according to a report published by Business Recorder.
The report, citing informed sources, says financial constraints have prevented the agency from clearing the outstanding liabilities.
The payment delays have prompted repeated requests for government intervention, with the issue reportedly reaching the Prime Minister’s Office on several occasions.
Port Qasim Electric Power Company (PQEPC) has most recently sought assistance from the finance, planning and energy ministries to recover its overdue receivables.
The dispute highlights continuing financial pressure on power producers operating under CPEC and the challenges facing Pakistan’s electricity payment system.
However, the reported outstanding amount should not be interpreted as evidence that the affected plants have stopped generating electricity or defaulted on their loans.
Port Qasim Power Plant Reports Rs79 Billion in Dues
Port Qasim Electric Power Company operates a 1,320-megawatt coal-fired power plant established under CPEC.
In a letter dated September 29, 2026, the company’s chief executive, Wang Dongfeng, reported that its outstanding receivables had reached Rs79 billion, equivalent to approximately $285.4 million.
According to the report, payments had remained overdue for more than six months.
The company requested government assistance to help CPPA-G clear the amount and warned that continued delays could put further pressure on the project’s financial position.
PQEPC said prolonged nonpayment could threaten the sustainability of electricity generation and create risks under its loan agreements and the government’s sovereign guarantee. These were warnings about potential consequences, not confirmation that a loan default had already occurred.
The company also argued that its energy purchase price tariff was comparatively lower than that of oil-fired and re-gasified liquefied natural gas (RLNG)-based power plants. It maintained that timely payments were important to sustain operations and meet its financial commitments.
The company’s Chinese and Qatari shareholders and sponsors have reportedly raised concerns about the delayed receivables and called for steps to reduce the outstanding amount.
Sahiwal Coal Power Plant Faces Rs80 Billion in Receivables
The payment dispute extends beyond Port Qasim. Outstanding receivables for the 1,320-MW Sahiwal coal-fired power plant have reportedly reached around Rs80 billion, according to sources cited by Business Recorder.
China Huaneng, which owns and operates the plant, has repeatedly approached the government over the unpaid amounts. The company has also sought intervention from the Prime Minister’s Office regarding a dispute with CPPA-G over long-pending deductions from capacity payments.
According to the report, China Huaneng has alleged that Pakistani authorities pressured it to enter into a “give-and-take” arrangement as a condition for clearing the disputed deductions.
This allegation has not been independently established in the available reporting and should be treated as the company’s reported position rather than a confirmed finding.
The dispute has reportedly remained unresolved for around four years despite attempts to obtain a settlement through official channels.
Together, Port Qasim and Sahiwal account for approximately Rs159 billion in reported receivables, representing a substantial portion of the wider Rs498 billion outstanding to CPEC power projects.
Why Delayed Payments Matter for Pakistan’s Power Sector
CPPA-G plays a central role in purchasing electricity on behalf of distribution companies and settling payments with power-sector participants. Its official website lists procurement, billing and settlements among its core functions.
When payments to generators are delayed, power producers can face cash-flow pressure even if their plants remain operational. They must continue meeting expenses and servicing financing obligations while waiting for electricity payments.
For projects with large construction loans, prolonged delays can increase financial risks and complicate debt repayment. Where a government guarantee applies, potential defaults could also create obligations or risks for the state, depending on the terms of the relevant agreements.
The reported Rs498 billion figure also raises questions about the flow of funds through Pakistan’s electricity market. CPPA-G’s payment system depends on collections from distribution companies and the settlement of verified invoices, making the timing and availability of funds important to payments across the sector.
The latest figures are based on reporting that cites informed sources and company correspondence. A consolidated official statement confirming the full Rs498 billion amount, its breakdown by project and the timetable for settlement was not identified for this report.
The immediate issue for the government is whether it can resolve the outstanding claims while maintaining transparency around disputed deductions, contractual obligations and the use of public funds.
