A dispute has emerged between the Power Division and the State Bank of Pakistan (SBP) over Rs. 431 billion owed to Chinese independent power producers (IPPs).
The Power Division claims the funds, equivalent to $1.54 billion, have been withheld in Pakistani banks despite being approved for repatriation. However, SBP maintains that no such payments are pending and that the banks have full authority to remit the amounts, reported Business Recorder.
The backlog spans several months, with the Power Division asserting that the non-payment could jeopardize future Chinese investment in the power sector. The SBP has blamed commercial banks for delays and stated that it cannot intervene under the existing regulations.
The issue remains unresolved, risking strain on Chinese investor confidence and delaying crucial energy payments under CPEC agreements.
Editorial & Legal Practice Group
Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.
Advocates High Court & Tax Counsel
Jurisdiction: Pakistan