Chinese CPEC power plants owed about Rs498 billion as Port Qasim and Sahiwal operators seek government help

Key takeaways

• Power plants built by Chinese companies under the China-Pakistan Economic Corridor (CPEC) are owed about Rs498 billion by the Central Power Purchasing Agency-Guarantee (CPPA-G), Business Recorder reported on Monday, citing sources.
• Port Qasim Electric Power Company (PQEPC), which runs a 1,320MW coal plant, says it is owed Rs79 billion ($285.4 million), with payments more than six months late.
• The 1,320MW Sahiwal coal plant's receivables have reportedly reached about Rs80 billion.
• PQEPC warned that delays could lead to defaults under its loan agreements and the government's sovereign guarantee.
• The figures are from a newspaper report based on sources and a company letter; the government and CPPA-G had not publicly commented.

What is being reported

According to Business Recorder, whose report was also carried by Profit and ProPakistani, the CPEC power companies have repeatedly written to CPPA-G about overdue payments, and on some occasions the issue has reached the Prime Minister's Office. CPPA-G is described as unable to clear the dues because of financial constraints.

In a letter dated September 29, 2026, PQEPC Chief Executive Wang Dongfeng asked the ministers for finance, planning and energy to step in. The company asked the government to give CPPA-G financial support so it can clear the overdue amount. It said its Chinese and Qatari shareholders were unhappy about the delays.

PQEPC also argued that its energy purchase price is lower than that of oil- and imported-gas (RLNG) plants, so paying it on time makes sense for the system.

The Sahiwal dispute

China Huaneng, which owns and runs the 1,320MW Sahiwal coal plant, has also sought help from the Prime Minister's Office, the report said. Besides about Rs80 billion in receivables, it has a separate dispute with CPPA-G over deductions from capacity payments that has reportedly gone unresolved for about four years. The company has reportedly alleged that it was pressed to accept a "give-and-take" settlement as a condition for resolving it. This is the company's claim as reported; there was no response from the authorities in the report.

Key numbers

Why it matters

The Port Qasim company says the delays have put the project in a "critical" financial position. In its letter it linked timely payment directly to two things: keeping its plant generating, and avoiding defaults on loans that are backed by the Pakistani government's sovereign guarantee. The company also acknowledged that the government and CPPA-G have been trying to arrange funds to pay power producers.

What happens next

• Watch for any statement from the Power Division, Finance Ministry or CPPA-G on a payment plan.
• Whether the dues come up in Pakistan's talks with Chinese partners on CPEC.
• Any further letters or legal steps from the power companies if payments remain stuck.

This article is for information only and is not financial advice.