China, in a recent meeting with Pakistan officials, expressed that currency exchange restrictions imposed by the State Bank of Pakistan have badly affected the coal import

The Chinese government has told Pakistan that it is concerned about the overdue payments worth $1.5 billion to the Chinese independent power plants (IPPs), which were developed under the China-Pakistan Economic Corridor (CPEC). China, in a recent meeting with Pakistan officials, expressed that currency exchange restrictions imposed by the State Bank of Pakistan have badly affected the coal import, a report in the Express Tribune said. 

In a letter to the Pakistan Planning Commission on March 13,  Special Assistant to Prime Minister (SAPM) (Coordination) Syed Tariq Fatemi said China’s Charge d’ Affaires Pang Chunxue has raised her concerns over the CPEC power projects. 

Fatemi in his letter said: “Overdue payments to the Chinese IPPs currently stand at $1.5 billion. This is causing huge concern among Chinese businesses.”  

Fatemi further wrote that Pang said that Chinese power plants at Hub, Sahiwal, and Port Qasim were facing currency exchange restrictions, which was causing difficulty in coal import. 

“These power plants require a specific-grade coal for electricity production. If the same is purchased from the local spot market, then Nepra requires that the price should not be higher than the price of imported coal, which is not feasible due to exchange rate fluctuation/ rupee devaluation,” Fatemi wrote in his letter.