Chinese IPPs circular debt: Outstanding amount of Pakistan rises to Rs350bn: Reports
The current outstanding payment on account of circular debt for Chinese Independent Power Producers (IPPs) has spiked to touch Rs350 billion.
There have been growing demands to clear the backlog.
“The outstanding backlog of Chinese IPPs stands at Rs350 billion, which is being accounted at the rate of 14% while the remaining 86% is being paid regularly. The CPPAG stated that it will be further improved,” it was announced during a CPEC review meeting held here on Friday as quoted by The News International.
Planning Minister Ahsan Iqbal chaired the meeting and discussed progress on Special Economic Zones, ML-1, KCR and various new development initiatives to be discussed by the Joint Working Groups (JWGs).
According to sources, without achieving any substantial progress towards finalizing the financing plan for the construction of the much-awaited ML-1 project, the CPEC progress review committee was informed that the Chinese side was working on financial mechanism for this multi-billion-dollar project.
“A Joint Financial Committee meeting on ML-1 is expected during the ongoing month to finalise the terms and kick-start the Package-1 of ML-1,” top official sources were quoted as saying in the meeting.