KARACHI: China has shown reluctance to renegotiate the capacity tariff agreements for Chinese Independent Power Producers (IPPs) operating under the China-Pakistan Economic Corridor (CPEC), citing delayed payments from Pakistan.
Speaking at an event hosted by the All Pakistan Newspapers Society (APNS), Chinese Ambassador to Pakistan Jiang Zaidong emphasized that the capacity tariff was part of a universal arrangement made by the Pakistani government to support its power sector. Ambassador Jiang revealed that Pakistan has delayed payments amounting to $1 billion to Chinese IPPs, despite Chinese investments of $5.5 billion in the energy sector.
Jiang highlighted China’s contribution to Pakistan’s power infrastructure, stating that CPEC power projects have added 8,220 MW to the country’s installed capacity, which now totals 45,000 MW. He noted that CPEC projects have played a critical role in resolving Pakistan’s energy crisis, particularly in cities like Karachi, which no longer experience load-shedding.
While addressing recent media discussions on the financial arrangements between the two nations, Ambassador Jiang warned against disinformation and emphasized the importance of maintaining strong bilateral relations. “We need solutions, not blame, to strengthen the partnership,” he said.
Despite the challenges, Jiang reaffirmed China’s commitment to CPEC, describing the initiative as a “game changer” for Pakistan’s economic future. He expressed confidence that ongoing cooperation would help Pakistan achieve “advanced modernization” in various sectors, including energy, agriculture, and IT.
The ambassador also acknowledged the security efforts of the Pakistani government and military in protecting Chinese nationals working on CPEC projects.
Looking forward, Ambassador Jiang emphasized China’s long-term commitment to supporting Pakistan’s economic development through the second phase of CPEC and broader cooperation in agriculture and mining sectors.
Story by Muhammad Ali
