Clearing Dues.
After countless requests, complaints and boycotts, CPEC's independent power producers (IPPs) are finally being promised payments worth at least Rs.50 billion. This is a step that should have been taken earlier, especially in the face of countless hurdles that independent producers and officials had to face while laying down the project. The government has acknowledged that it cannot escape these payments and is actively creating a mechanism through which repayment is made possible despite tough economic circumstances. The hope is that we do this in time because otherwise, we may alienate one of our strongest allies.
Originally, Pakistan's Central Power Purchasing Agency (CPPA) owed Rs.300 billion to Chinese IPPs but this amount was successfully brought down to Rs.260 billion. However, there is immense pressure still considering that this too is quite a hefty amount that we have to dish out and soon. We have negotiated terms once again and have been fortunate enough to be granted some relief in the form of debt-servicing but with the IMF's strict eye watching Pakistan diligently, a more comprehensive and long-term strategy has to be devised.
For now, no such details have been given as to how the whole amount will be repaid but the government has promised to...
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