China keeps on ignoring Pakistan’s pleas to renegotiate power agreements
The power sector of Pakistan continues to crumble under the ever increasing burden of Chinese debt. Islamabad attributes the mountainous debt to the faulty power purchase agreements (PPAs) it signed with the Chinese companies. According to recent estimates in Pak media, the country owes PKR 350 billion (around $1.27 billion) to the Chinese independent power producers (IPPs) and the liability has become a sore point in the bilateral relations. Further, the issue is being regularly raised in Pakistan’s negotiations with multilateral lenders, casting a shadow over the fiscal health of the country. The liability and its potential impact on state finances has also been a contentious domestic political issue.
In 2020, a ‘leaked’ report of an internal committee formed by the Pak government ha










