Energy producers: Aurangzeb takes up payments issue with PQEPC team

Updated 30 Aug, 2024

ISLAMABAD: The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a meeting with a delegation from the Port Qasim Electric Power Company (PQEPC) which focused on various matters related to the power sector including the payments to the energy producers and possible ways to resolve the issues hindering timely payments.

It was also agreed to establish a working group comprising members from PQEPC, the Power Division and the Finance Division. This group will monitor progress on a day-to-day basis to ensure timely and effective implementation of the agreed-upon initiatives.

The PQEPC delegation was led by Yang Tianyu, President of Power China Resources. Also in attendance were the Minister for Energy (Power Division), Awais Ahmad Khan Leghari, Minister of State for Finance and Revenue, Ali Pervaiz Malik, Secretary of Power Division, and senior officials from the Finance Division.

PQEPC team meets Aurangzeb

The finance minister reiterated the government’s unwavering commitment to bolstering the energy sector and expressed confidence in PQEPC’s significant role in meeting Pakistan’s energy demands. He emphasised the significance of collaborative efforts between Pakistani and Chinese companies in advancing sustainable and energy efficient solutions. The meeting focused on various matters related to the power sector including the payments to the energy producers and possible ways to resolve the issues hindering timely payments.

Matters related to the technical and financial feasibility of converting these projects to run on domestic coal, thereby, reducing reliance on imported fuel were also discussed.

The Chinese side was informed that the government is taking a number of steps to facilitate this transition including the launch of a railway line to ensure smooth and effective transformation of local coal. The finance minister also briefed the delegation on the structural reforms being undertaken by the government, particularly, in the energy sector, and the ongoing privatisation of power supply companies and state-owned enterprises (SOEs). He assured the delegation of the government’s steadfast commitment to providing all necessary support and taking swift action to overcome any challenges impeding the operation of these power plants.

In response, the president of PQEPC expressed appreciation for the government’s efforts in implementing energy sector reforms and thanked the government for its continued support in reviving the operations of the Port Qasim coal projects.

The finance minister reaffirmed the government’s full commitment to honouring all obligations, particularly, in government-to-government projects, and maintaining the sanctity of contracts in both letter and spirit. He expressed confidence that, through mutual understanding and cooperation, both sides could develop sustainable solutions to the core issues facing the power sector, ensuring its long-term viability.

The meeting concluded with an agreement to establish a working group comprising members from PQEPC, the Power Division, and the Finance Division. This group will monitor progress on a day-to-day basis to ensure timely and effective implementation of the agreed-upon initiatives.

Copyright Business Recorder, 2024

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