Energy projects built under the China-Pakistan Economic Corridor are waiting for Rs. 498 billion in unpaid dues from the Central Power Purchasing Agency-Guarantee, according to sources. Power firms have repeatedly contacted CPPA-G for their overdue receivables, and the matter has reached the Prime Minister Office several times.
Port Qasim Electric Power Company recently asked the ministers for finance, planning, and energy for help in collecting its unpaid dues.
Port Qasim power plant awaits Rs. 79 billion
PQEPC runs a 1,320-megawatt coal-fired plant under CPEC. In a September 29, 2026 letter, the firm stated its unpaid receivables hit Rs. 79 billion, which equals $285.4 million. The funds stayed overdue for over six months, and the business warned receivables could grow further if delays persist.
PQEPC requested fast government assistance so CPPA-G could settle the balance, warning that delayed payments could hurt financial viability, endanger power generation, and cause defaults on loans and sovereign guarantees.
Shareholders and sponsors from China and Qatar expressed deep worry over the delayed payments and demanded quick action to lower liabilities.
PQEPC acknowledged government and CPPA-G efforts to gather funds for independent power producers, but noted the long delays created heavy financial pressure on the Port Qasim project.
The firm also pointed out its lower energy purchase price tariff compared to oil and RLNG plants, stating timely payments are vital to keep generating electricity and prevent loan defaults.
The payment crisis goes beyond Port Qasim. Unpaid receivables for the 1,320-MW Sahiwal coal power plant reached roughly Rs. 80 billion, sources stated.
China Huaneng, the owner and operator of the plant, repeatedly asked the government to pay its dues.
The firm reportedly accused Pakistani officials of pushing for a give-and-take deal to clear long-pending deductions from capacity payments.
China Huaneng also asked the Prime Minister Office to intervene in its four-year dispute with CPPA-G that remains unsettled despite institutional efforts.
Payment delays deepen financial pressure
The unpaid funds worry Chinese-backed energy projects under CPEC, as companies ask the government for help to recover dues and keep financial stability.
Port Qasim and Sahiwal account for about Rs. 159 billion in receivables, while the total amount owed to CPEC energy projects by CPPA-G is Rs. 498 billion, according to sources cited by Business Recorder.
These warnings point to financial risks from delayed payments, including operational pressure and loan obligations, though available details do not show any plant has defaulted or stopped generating power.
