Islamabad [Pakistan], May 1 : Pakistan is in talks to finalize a payment schedule of nearly Pakistan currency (PKR) 550 billion (USD 1.98 bn) to Chinese Independent Power Producers (IPPs) ahead of the 13th Joint Coordination Committee (JCC) meeting of the China-Pakistan Economic Corridor (CPEC), Dawn reported on Wednesday.
Prime Minister Shehbaz Sharif's visit to Beijing, slated for the first week of June, is expected to follow the JCC meeting.
The Pakistan-based news daily reported citing sources revealed that the Chinese authorities have stipulated that Pakistan Prime Minister Shehbaz Sharif's visit should occur after the 13th JCC meeting to address outstanding issues and solidify cooperation under CPEC-2. However, the scheduling of the JCC meeting is pending due to unresolved issues.
The entire focus of the Pakistani side, spearheaded by Pakistan's Planning Minister Ahsan Iqbal, co-chair of the JCC, is to settle all pending matters, particularly concerning the reduction of outstanding dues to Chinese IPPs and ensuring timely future payments, including those under the revolving fund, Dawn reported citing sources.
Chinese power dues currently stand close to PKR 550 billion, with disruptions observed in timely payments under the revolving fund in recent months. Chinese financial institutions are seeking reassurance to extend further cooperation in critical projects, necessitating urgent confidence-building measures.
"The delay in payments and the Chinese insistence on special energy tariffs for Special Economic Zones (SEZs) have impeded major projects and investments in SEZs," sources added.
Dawn reported that Pakistan's Minister Iqbal has been engaging in extensive consultations with relevant ministries and agencies, including two high-profile sessions on Tuesday. He chaired the first meeting of the Cabinet Committee on Chinese Investment Projects (CCoCIP) to address overdue issues concerning CPEC-IPPs, stressing the submission of outstanding amounts by the IPPs involved in CPEC energy projects.
"The importance of providing electricity to SEZs at an incentivized cost, without government losses, was emphasized," said an official statement quoting Minister Iqbal. He directed the involvement of the Board of Directors of power firms, particularly the National Transmission and Dispatch Company, to expedite the resolution of SEZ-related issues.
Additionally, Minister Iqbal held a detailed session with 35 Chinese enterprises and Pakistani business houses to garner input and proposals for enhancing bilateral cooperation and realizing mutual opportunities. He highlighted that the second phase of CPEC emphasizes industrial cooperation and business-to-business partnerships, building upon the groundwork laid in the initial phase.
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