Dollar Scarcity Forces The Government To Halt Payments To Independent Power Producers, Sparking Concern Over Energy Supply

The shortage of dollars in the country has caused a halt in payments to Independent Power Producers (IPPs), as reported by sources in the Central Power Purchasing Agency (CPPA).

The arrears of Chinese IPPs operating under the China-Pakistan Economic Corridor (CPEC) have now accumulated over $1.5 billion, according to the same sources within the CPPA.

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According to sources within the Central Power Purchasing Agency (CPPA), coal-fired power plants in Sahiwal, Port Qasim, and Hub have been established under the China-Pakistan Economic Corridor (CPEC). However, payments to China’s coal-fired power plants have been suspended due to the need for more dollars. 

The CPPA sources acknowledge the challenges coal-based Independent Power Producers (IPPs) face due to non-payment. Still, they believe that the situation can only improve with the availability of dollars.