Pakistan’s efforts to secure financial relief on outstanding payments linked to China-Pakistan Economic Corridor power projects have reportedly faced a setback, as Chinese lenders and independent power producers remain unwilling to waive nearly Rs170 billion in accumulated late payment surcharges. According to a report citing Express Tribune, total outstanding payments to CPEC power projects had climbed to around Rs423 billion by the end of FY2025-26. The reported liabilities include about Rs260 billion in unpaid energy purchase payments, while the dispute over late payment surcharges remains unresolved. Chinese companies have maintained that contractual terms should be honoured, adding pressure on Pakistan’s already financially strained power sector. The development highlights the broader circular debt challenge facing Pakistan’s electricity industry. With CPEC energy projects forming an important part of the country’s power infrastructure, resolving outstanding dues and payment disputes remains critical for maintaining investor confidence and ensuring continued cooperation in the energy sector.
