Chinese investors struggle to get their dues from Pakistan government

A number of Chinese investors involved in multiple projects across Pakistan have raised the issue of outstanding payments with the highest level in the government as the Pakistan government is failing to pay their dues on time, media reports say

Sep 20, 2021
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Chinese investors struggle

A number of Chinese investors involved in multiple projects across Pakistan have raised the issue of outstanding payments with the highest level in the government as the Pakistan government is failing to pay their dues on time, media reports say. Accumulated dues have crossed over $1.4 billion. 

Chinese officials have raised the issue with senior Pakistan officials following which the latter have decided to clear a part of dues to investors, a report in Dawn newspaper said. Chinese firms involved in independent power generation projects grew increasingly worried over delayed payments. 

“We are working hard to clear at least some of the payments at the earliest,” a Pakistan official was quoted as saying by Dawn, adding the Chinese investors had been agitating against this at the highest government level.   

Earlier media reports also said that Chinese officials were anxious about slow implementations of CPEC projects in the country --a claim denied by Planning Minister Asad Umer. 

The recent spate of attacks on Chinese workers in Pakistan has also affected the pace of these projects. The work on the Dasu Dam project in its northwestern province of Khyber Pakhtunkhwa could not be resumed after an attack killed nine Chinese workers last month. 

The firm involved in the project has been demanding compensation from the government before starting the project. However, Pakistan officials insisted on resumption of work while they negotiate compensation. 

“We are working very hard for some payments within this month or early next month,” said a senior government official, adding that the Chinese companies are very accommodating and there is nothing to suggest that we are on the verge of default.

No company has resorted to extreme steps or issue notices, but tries to resolve matters at the government level, he said. 

(SAM) 

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