Key points
- The payment was scheduled to be executed on Tuesday: report
- Prime Minister Shehbaz to visit Beijing on August 31, 2025
- Shehbaz Sharif expected to attend SCO summit and an investment conference
ISLAMABAD: Pakistan has cleared over Rs100 billion in outstanding dues owed to Chinese power generation firms just days before Prime Minister Shehbaz Sharif’s official visit to China.
The payment, scheduled to be executed on Tuesday, precedes the Prime Minister’s departure to Beijing on August 31, 2025, where he is expected to attend the Shanghai Cooperation Organisation (SCO) Heads of State summit and an investment conference hosted by Pakistan’s embassy, The Express Tribune reported.
Pakistan clears Rs100B Chinese energy debt – a major win for the economy! pic.twitter.com/EgJH29tj0r
— Mansoor Ahmed Qureshi (@MansurQr) August 26, 2025
This payment covers nearly 25 per cent of Pakistan’s total liabilities to Chinese power companies.
Financial commitment
The newspaper also reported, citing government insiders, that Prime Minister Sharif had instructed the Finance Ministry to ensure the funds were released by August 25, indicating the importance attached to fulfilling this financial commitment ahead of the visit.
As of June 2025, the total amount owed to Chinese power producers under the China-Pakistan Economic Corridor (CPEC) stood at roughly Rs423 billion. With this payment, the balance drops to slightly over Rs300 billion, the report said.
An additional Rs8 billion from the regular budget has also been allocated to these firms.
Officials noted that the payment was drawn from power sector subsidies set aside in the current fiscal year’s budget.
