Islamabad, Mar 18: Pakistan has assured the International Monetary Fund (IMF) that it does not plan to allocate an additional budget to settle the Rs 493 billion dues of Chinese power plants, media reported.The global lender is also questioning the efficacy of the power sector’s anti-theft campaign.
The IMF inquired about the Pakistan government’s decision on the allocation of funds for the Chinese power plants over and above the budgeted amount of Rs 48 billion for this fiscal year, Express Tribune reported.
The IMF was informed that there was no plan to approve additional funds for retiring the outstanding debt of the Chinese power plants.
The outstanding dues of power projects of China-Pakistan Economic Corridor (CPEC) alarmingly increased to a record Rs 493 billion or $1.8 billion as of January-end. The amount was Rs 214 billion or 77 per cent higher than June last year.
The build-up of Chinese debt violates the 2015 Energy Framework Agreement, which binds Pakistan to allocate sufficient money in a special fund to keep Chinese investors immune from the circular debt.
Sources said the IMF appeared sceptical about the long-term success of the government’s anti-theft campaign and the military’s involvement in monitoring the performance of power distribution companies, Express Tribune reported.