Islamabad:
The government has limited the outstanding power plants set up under the China -Cupid Economic Corridor (C -PAC) to Rs 423 billion by the end of this financial year, which is only 22 billion or 5.5 percent in the last financial year.
According to official documents, by the end of 2025, the Pakistani government has paid a total of Rs 5.1 trillion to Chinese power plants, which is 92.3 % of the total outstanding dues.
Officials say the original outstanding amount is less than Rs 300 billion rupees, while the remaining amount is in the interest of delay in payment, the government is currently in the process of obtaining a new loan of Rs 1.3 trillion from local banks to pay dues to public, private and sugar energy projects.
According to sources, the federal cabinet has created a relief from power plants in exchange for loans, but Chinese companies are not willing to waive interest due to their internal rules, under the 2015 C -Pack Energy Framework Agreement, under the C -Pack Energy Framework Agreement, the Pakistani government will have to pay for electricity or not pay for electricity.
Under the agreement, the government had to keep 21 % of electricity bills in a rotating fund, but the former government allocated Rs 48 billion annually in the fund in October 2022 and limited the monthly emissions to only Rs 4 billion, which increased the current dues to Rs 423 billion.
The Chinese government has repeatedly raised the case in Pakistan through diplomatic sources, Prime Minister Shahbaz Sharif will visit China next month, where efforts will be made to highlight the issue and restore investment.
