Islamabad: Amid mounting concerns over Chinese investments in Pakistan, outstanding dues from Chinese power plants have reached a staggering Rs529 billion, reflecting a strained financial relationship. Beijing is pushing for enhanced fiscal benefits within the China-Pakistan Economic Corridor’s (CPEC) Special Economic Zones (SEZs) to bolster investment.
The first meeting of the Cabinet Committee on Chinese Investment Projects (CCoCIP) highlighted Pakistan’s lapses in addressing circular debt issues, leading to discrepancies in power purchase payments to Chinese suppliers. This delay has hindered financial closures for key projects, impacting two Chinese-sponsored power plants with a capacity of 1,824 megawatts.
Chinese investors are also seeking exemptions and preferential treatment, including duty waivers, stable power supply, and discounted electricity rates for SEZs. Planning Minister Ahsan Iqbal stressed the need for attractive incentives while ensuring fiscal prudence.
Security measures for Chinese nationals were discussed, emphasizing community awareness and modern technology utilization for monitoring activities. Plans for future collaboration under CPEC Phase 2 were outlined, awaiting confirmation for the 12th Joint Cooperation Committee meeting scheduled for May 24.
