ISLAMABAD: The Central Power Purchasing Agency-Guaranteed (CPPA-G) has requested a three-year extension on the exemption from the applicability of International Financial Reporting Standards (IFRS) 9, until June 30, 2027, to prevent expected credit losses due to unresolved receivables in the power sector.
In a response to the Securities and Exchange Commission of Pakistan’s (SECP) letter, CPPA-G highlighted the risks of recognizing credit losses under IFRS-9 on debts owed by the government, citing adverse impacts on the creditworthiness of power companies and their working capital lenders. SECP has exempted the power sector from IFRS-9 since 2019, and CPPA-G now seeks further relief to manage complexities related to circular debt and delayed payments.
Story by Mushtaq Ghumman
