Chinese IPPs Demand Rs. 498 Billion in Unpaid Dues

Chinese power projects established under the China-Pakistan Economic Corridor (CPEC) are awaiting Rs.

Key points

• China Huaneng has additionally sought intervention from the Prime Minister's Office over its longstanding dispute with CPPA-G.
• GEPCO Wants to Raise Its Capital Limit by Rs.
• China Huaneng, the Chinese firm that owns and operates the plant, has repeatedly approached the administration to secure payment of its dues.
• PQEPC operates a 1, 320-megawatt coal-fired power plant established under CPEC.

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 firms have repeatedly written to CPPA-G seeking payment of their overdue receivables, with the problem reaching the Prime Minister's Office on a number of occasions, the sources remarked.

Meanwhile, the latest request for administration intervention came from Port Qasim Electric Power Business (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. Economy Now Solid, Inflation Down: SBP Governor. 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 firm noted that its outstanding receivables had reached Rs. 79 billion, equivalent to $285.4 million.

In practice, the payments had remained overdue for more than six months, and the firm cautioned that its receivables could growth further if the delays continued.

PQEPC sought urgent administration backing to support 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.

In practice, the company's Chinese and Qatari shareholders and sponsors have additionally reportedly expressed serious concern over the delayed payments and called on immediate action to reduce the outstanding liabilities.

GEPCO Wants to Raise Its Capital Limit by Rs. 25 Billion Ahead of Privatization.

While acknowledging efforts by the administration and CPPA-G to arrange funding and produce payments to independent power producers (IPPs), PQEPC noted the prolonged delays had placed the Port Qasim project under considerable financial pressure.

Meanwhile, the firm additionally highlighted its comparatively lower energy purchase cost (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.

For context, 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.

In practice, the firm 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. PM Shehbaz Rejects LPG Auction Plan.

China Huaneng has additionally 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 firm to obtain a resolution through the relevant institutional channels. Payment delays deepen financial pressure.

Notably, the outstanding payments have become a major concern for Chinese-backed power projects operating under CPEC, with firms seeking administration intervention to recover overdue amounts and maintain financial stability.

Port Qasim and Sahiwal alone account for approximately Rs. 159 billion in documented 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*.

Meanwhile, the firms' warnings highlight the financial risks associated with prolonged payment delays, including pressure on project operations, loan repayment obligations, and government-backed guarantees. Nevertheless, the available information does not establish that either plant has defaulted on its loans or suspended electricity generation. Stay Connected with ProPakistani.

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In short, chinese IPPs Demand Rs. 498 Billion in Unpaid Dues is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.