Sources said the IMF suspected that the Chinese IPPs might have been overcharging Pakistan and there was a need to reopen these deals. When contacted, Esther Perez, IMF’s Resident Representative, emphasised the need for equitable treatment of all power sector stakeholders due to the limited fiscal space. Due to the IMF’s objections, the government did not directly make payment of Rs50 billion to the Chinese IPPs last week. Prime Minister Shehbaz Sharif had announced that the Chinese IPPs would be given Rs50 billion to ensure fuel supplies. Out of these, nearly 2,000MW of power plants had been shut last month due to the depletion of imported coal inventories.

Source: The Express Tribune June 09, 2022 11:55 UTC