Pakistan’s CPEC-related power plants are currently awaiting $1.72 billion in overdue payments, creating serious financial stress for operators and jeopardizing energy sector stability.

These outstanding dues include capacity charges and fuel adjustments, which are essential revenue components critical to the ongoing functionality of power generation facilities. The delay has disrupted cash flows, increased pressure on their ability to maintain maintenance schedules, and threatened long-term investor confidence in upcoming energy ventures.

Industry experts warn that continued payment delays may force power plants to reduce generation, impacting electricity supply and potentially leading to higher tariffs or increased reliance on broad government subsidies.

Analysts emphasize that resolving these payment issues is key to preserving operational resilience, honoring contractual commitments, and avoiding a chilling effect on future CPEC investments. Addressing these financial backlogs promptly will be vital to maintaining Pakistan’s energy infrastructure momentum.