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The Chinese power companies that burn imported coal face obstacles when trying to resolve a number of important concerns with government agencies.

According to Business Recorder, there are currently more than Rs. 350 billion in arrears for Chinese coal-fired power facilities. Their purchases of coal are directly impacted by this.

The China Power Hub Generation Company recently reported that the worrisome sum of Rs. 81.91 billion represented its outstanding receivables. Additionally, the Sahiwal Coal Power Plant recently reported that non-payment to coal suppliers is the reason why more than 0.5 million tonnes of the coal it imported from South Africa are awaiting clearance at the port.

Guo Guangling, the CEO of Port Qasim Electric Power Company, has disclosed additional information, including the necessity of delaying the settlement procedure with the coal supplier due to restrictions on the usage of US Dollar reserves.

In this context, Chinese producers advised Prime Minister Shehbaz Sharif that the Port Qasim Project is allowed to use Chinese Yuan (RMB) to purchase coal. The State Bank of Pakistan (SBP) was asked by the Chinese businesses to assist Port Qasim in exchanging RMB.

Chinese power companies requested a revolving account and foreign exchange from the government at a meeting with Finance Minister Mifath Ismail at the end of July. The businesses forced the government to address their problems with payments, tariff adjustments, and liquidity losses.

The National Electric Power Regulatory Authority (NEPRA), according to the representatives of Chinese enterprises, has been slow to reply to their requests for rate adjustments. Chinese companies said that the regulator has not reacted to letters sent in this regard.