Pakistan The Pakistan government has promised to make payments of Rs50 billion to four China-Pakistan Economic Corridor (CPEC) power plants early next week to save them from default and send a positive signal across the border ahead of a visit by Prime Minister Shehbaz Sharif, media reports said on Sunday.
The decision was made on Friday in a meeting attended by Pakistani and Chinese stakeholders. Finance Minister Miftah Ismail presided over the meeting, which was also attended by the heads of Chinese power producers, reports The Express Tribune.
The meeting discussed the outstanding payments to the Chinese IPPs in Pakistan and other hurdles faced by them, according to a statement issued by the Ministry of Finance.
An official said that it was decided during the meeting that the Power Division would pay Rs50 billion to four Chinese power plants in local currency instead of US dollar.
Power producers will buy US currency from the market and stagger their overseas payments aimed at putting minimum pressure on the rupee. The government may conclude the Rs50 billion transactions as early as Tuesday, said the official to the newspaper.
Despite making nearly 90% payments against the billed amount, Pakistan still owes Rs74 billion to Sahiwal power plant, owned by Huaneng Shandong Ruyi group.
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