China insists on establishing a ‘circular account’ immediately under the agreement, timely payment of dues in recent meetings
Only Rs 250 billion in original dues accepted under CPEC, IMF informed
Dawn Investigation Cell, Dawn TV report
Islamabad: The government of Pakistan has informed the International Monetary Fund (IMF) that it will not pay Rs 220 billion in interest on late payments to power plants being built under CPEC by China and will seek a formal waiver from Beijing in this regard.
The government clarified that it recognizes only Rs250 billion as principal dues, while Rs220 billion due in interest is not being recognized, this amount is part of the total circular debt of Rs1.7 trillion, however, China has urged Pakistan in recent meetings to immediately establish a ‘circular account’ under the agreement made for CPEC energy projects so that timely payment of dues can be made.
China and Pakistan agreed in the recent Joint Cooperation Committee (JCC) meeting that stability in the rates of energy projects under CPEC will be maintained, disputes will be resolved through mutual consultation, and neither party will take unilateral decisions.
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