Engro Powergen Thar Limited (EPTL) has urgently requested Central Power Purchasing Agency-Guaranteed (CPPA-G) to clear at least Rs 32 billion in outstanding payments by the end of this month. This appeal aims to prevent a default on upcoming debt obligations, according to reliable sources.
EPTL’s plea to CPPA-G comes at a crucial juncture as Minister for Planning, Development, and Special Initiatives Ahsan Iqbal is in Beijing to address payment delays to Independent Power Producers (IPPs) under the China Pakistan Economic Corridor (CPEC).
In a letter from EPTL’s Chief Financial Officer (CFO), Wang Bu, the company highlights its significant overdue receivables from CPPA-G, totaling Rs 79 billion, with Rs 58 billion currently past due. This substantial amount has created a severe liquidity crisis, impacting the company’s ability to meet its financial commitments.
EPTL emphasizes that the requested payment of Rs 32 billion is crucial for debt servicing, settling outstanding dues with fuel suppliers, and ensuring the uninterrupted operation of its Thar coal-based power plant. Despite an initial payment of Rs 10 billion, the company stresses the need for timely and sufficient funds to cover operational expenses and debt obligations.
The power company’s request underscores the critical importance of timely payments to sustain essential energy infrastructure and honor financial commitments in the energy sector.
Story by Mushtaq Ghumman
