Under the 2015 energy framework agreement, Pakistan is contractually bound to make timely payments to the Chinese power plants that were set up under the CPEC framework. However, the Pakistani government has been violating this agreement since 2018 when the Chinese power plants started producing electricity. Three months ago, Pakistan had again assured China to disburse $1.4 billion or Rs230 billion dues to the Chinese power plants. China has hoped that the Pakistani side would get the article related to the revolving account on the ground soon. On an average, about Rs5 billion to Rs6 billion every month is paid less to Chinese power producers against the billed amount, said a finance ministry official.

Source: The Express Tribune December 15, 2021 08:35 UTC