China has declined Pakistan’s request to waive outstanding dues related to power projects established under the China-Pakistan Economic Corridor (CPEC).
According to reports, Chinese power companies insisted that the agreements signed between both sides must be fully honored and refused to remove the late payment surcharges attached to the unpaid amounts.
The unpaid dues, which reportedly total billions of rupees, have placed additional strain on Pakistan’s already burdened energy sector.
The country continues to face serious financial challenges, including mounting circular debt and liquidity issues that have affected timely payments to power producers.
The decision by the Chinese companies is expected to increase pressure on the government as it seeks to manage its financial obligations while ensuring uninterrupted electricity generation.
The latest development underscores the financial difficulties facing Pakistan’s power sector and highlights the importance of finding sustainable solutions to address outstanding liabilities.
It also reflects the significance of maintaining strong financial commitments under CPEC, a flagship economic partnership between Pakistan and China that continues to play a key role in the country’s infrastructure and energy development.
