Pakistan has committed to paying all new invoices, bringing its overdue payments for Chinese energy projects down to $1.4 billion (about Rs391 billion). This choice can force further funding or postpone payments to other power plants.
The arrears of electricity projects related to the China-Pakistan Economic Corridor (CPEC) had decreased by Rs10 billion (2.5%) from the end of fiscal year 2024 to Rs391 billion by the conclusion of the first quarter of the current fiscal year. Due to late payments, the liabilities have now reached a peak of $1.4 billion from their prior top of $1.8 billion.
Beijing has serious concerns about the nonpayment of energy expenses and returns on equity, particularly in light of the security concerns pertaining to Chinese citizens.
