Pakistan govt to start clearing dues of Chinese power projects next week

Pakistan has announced that it will start making payments to the independent power producers (IPPs) set up under the China-Pakistan Economic Corridor from next week, local media reported on Saturday.

Dawn newspaper reported that the government also set a schedule for regular monthly payments for a full fiscal year to the satisfaction of Chinese investors.

The Central Power Purchasing Agency (CPPA) of Pakistan owes around PKR260 billion to Chinese IPPs on account of power purchases, according to the publication. Chinese companies were given assurance that the issue of revolving accounts, pending for years will be resolved soon.