Pakistan has stepped up attempts to postpone payments to Chinese Independent Power Producers (IPPs) of more than Rs 550 billion for a duration of three to four years. This is in accordance with the demands made by the International Monetary Fund (IMF) for a fresh loan programme.
The IMF has mandated that the loan funds not be used for payments to China, which means that these payments will have to wait until the loan period is up, according to sources within the Ministry of Finance.
Discussions about the deferment were held with Chinese authorities during the Prime Minister’s recent visit to China, where the topic of these significant dues was a central concern.
Sources claim that while there is no agreement on changing the tariffs for Chinese IPPs, China has agreed to start discussions about delaying the payments.
According to a Ministry of Finance official, “the IMF wants to ensure that the money from the loan program is not used for payments to China.” “Our efforts are directed towards meeting this condition by deferring the dues.”
China is unwavering in its position on tariff changes, even in the face of Pakistan’s pressure. According to sources, China has refused to consent to any modifications to the tariffs, claiming that doing so would force them to renegotiate deals with other nations as well.
“China’s position is that if Pakistan changes the tariff, other countries will also demand the same,” the person continued.
