Pakistan assures IMF: No additional funds for CPEC

Pakistan has informed the IMF that it will not allocate additional funds to settle the Rs 493 billion dues of Chinese power plants. The IMF is questioning the efficacy of the power sector’s anti-theft campaign.

The IMF has raised concerns about Pakistan’s decision to not allocate more funds for Chinese power plants’ outstanding debts, currently at Rs 493 billion. The debt violates the 2015 Energy Framework Agreement between Pakistan and China.

The IMF is sceptical about the government’s anti-theft campaign and the military’s involvement in monitoring power distribution companies. The outstanding Chinese power plant dues have risen to a record Rs 493 billion as of January-end, raising alarm bells in Pakistan.