The government is considering either renegotiating the CPEC project terms or proceeding with payments only if discounts are given. Without that, a fresh plan would be required to clear full dues without deductions, local media reported.
Chinese IPPs and transmission companies have not been paid for some time. The government aims to settle some outstanding dues before Prime Minister Shehbaz Sharif’s anticipated visit to China in August or September 2025.
Eighteen banks have signed agreements with the Central Power Purchasing Agency (CPPA-G) to fund this loan, including HBL, NBP, UBL, MCB, Meezan Bank, and others.
The government approved the Power Division’s proposals, allowing CPPA-G to sign the Circular Debt Restructuring, Settlement, and Subscription Agreement (CDRSSA), raise funds, and allocate payments. Rs 267 billion already budgeted under DISCO equity will be released immediately, reduced by any transfers to K-Electric. Another Rs 393 billion will be issued via a technical supplementary grant.
CPPA-G is also authorized to repay government-owned power plants and, if surplus remains, to clear dues of Uch-I and Uch-II for onward payment to OGDCL. Rs. 683.25 billion in Power Holding Limited (PHL) debt will also be retired.
Also read: Pakistan Records Highest Ever Remittances in FY2024-25
