A serious dispute has surfaced between the Power Division and the State Bank of Pakistan (SBP) regarding Rs. 431 billion ($1.54 billion) in unpaid dues to Chinese Independent Power Producers (IPPs) operating under CPEC agreements.

According to the Power Division, the funds have already been approved for repatriation but remain stuck in Pakistani commercial banks. The division warned that the prolonged non-payment could undermine Chinese investor confidence and disrupt future energy collaborations in Pakistan.

READ MORE:

Motorola Unveils Swarovski-Studded Razr 2025 in Limited Brilliant Collection

On the other hand, the SBP has denied any pending payments, asserting that the banks are fully authorized to process the remittances. It blamed commercial banks for the delays and clarified that it cannot interfere under current regulations.

The backlog, spanning several months, continues to pose a risk to strategic energy partnerships, particularly those under the China-Pakistan Economic Corridor (CPEC) framework.