Pakistan has failed to pay PKR 423 billion in power dues related to China-Pakistan Economic Corridor projects [1].
This financial shortfall complicates the diplomatic and economic relationship between Islamabad and Beijing. The inability to settle these debts may hinder future infrastructure investments and strain the stability of the national power grid.
The outstanding amount is approximately $1.35 billion [1]. These arrears have accumulated due to systemic delays in power distribution, and broader payment issues tied to the CPEC framework [1].
To address the crisis, the government is seeking alternative funding sources. A report from The Express Tribune said that the government's search for $10 billion in cheaper financing continues as it attempts to pay off expensive energy loans [1].
The CPEC initiative was designed to modernize Pakistan's energy sector and improve connectivity. However, the financial burden of maintaining and paying for these power plants has outpaced the government's current fiscal capacity, creating a cycle of debt.
Officials in Islamabad have not provided a specific date for when these payments will be settled [1]. The pressure to resolve these dues remains high as China monitors the viability of its energy investments in the region.
“Pakistan has unpaid power dues totaling PKR 423 billion related to the CPEC projects.”
The accumulation of these arrears highlights a critical gap between Pakistan's energy infrastructure ambitions and its actual liquidity. By relying on expensive energy loans and struggling to meet payment schedules, Pakistan risks a credit downgrade or a slowdown in CPEC project completions, which are vital for the country's long-term industrial growth.
