ISLAMABAD: Prime Minister Shehbaz Sharif is expected to visit China next month to attend the Shanghai Cooperation Organization (SCO) summit and participate in an investment conference at the Pakistani Embassy in Beijing, official sources said.
Ahead of the high-level visit, the Prime Minister has directed the Ministry of Finance to release ₨100 billion in payments to Chinese power plants to reduce their outstanding dues.
According to Finance Division sources, the payment will reduce the pending liabilities of Chinese power producers by nearly one-fourth.
The Finance Ministry is working to release the amount from the power sector subsidy, while an additional ₨8 billion has already been disbursed to Chinese plants through the regular budget. As of June, their total dues had surged to ₨423 billion.
Sources said a major portion of the upcoming ₨100 billion payment will go to three coal-based power plants. Pakistan had earlier established a revolving fund to cover 21% of power bills under CPEC agreements, allocating ₨48 billion annually, but only ₨4 billion per month could be withdrawn. For the current fiscal year, ₨8 billion has been paid for July and August.
Officials admitted that delays in payments have slowed the implementation of CPEC-related agreements, straining financial ties between the two countries.
