Business

CPEC firms seek timely payments to keep powerhouses afloat

Published

1 year ago

Farwa

Chinese firms overdue payments exceeded $1.2bn.
If status quo continues, it will be no more sustainable, say Chinese enterprises.
We are not being paid on time, CPEC firms add.

ISLAMABAD: Power sector firms of China Pakistan Economic Corridor (CPEC) in Pakistan had urged the caretaker government to guarantee timely payments against the sale of electricity to the Central Power Purchase Agency (CPPA) as they had initiated injecting their equity to make them operational, The News reported on Thursday.

Chinese enterprises brought up the issue whilst holding a media talk arranged by Infodor Salon on the CPEC energy sector.

The CPEC power projects are partially paid by the government on and off against the invoices they generate. It is estimated that their overdue payments have now exceeded $1.2 billion.

More importantly, due to the adverse risk profile of the power purchaser, Chinese national insurance company, M/s Sinosure, has reduced its coverage for Pakistan’s projects to 70% from 95% and banks are now asking for 25% coverage from a third party.

“If the status quo continues, it would be no more sustainable for Chinese enterprises to keep their projects fully operational. We are getting some portion of our receivables enabling us to pay loan installments with interest to our lenders,” was the unanimous response by almost all the representatives of the Chinese enterprises in the power sector when asked if they were getting 100% payments on time against the electricity being sold.

“We are not being paid on time and the government has not constituted a revolving fund as desired by CPEC enterprises, bringing us to a point where we do not even have the funds to open LCs for importing equipment critical to ensure maintenance of the plants.”

Earlier, CPEC energy enterprises including Power China Pakistan, China Three Gorges South Asia Investment Ltd, China Energy International Group Company Limited Pakistan Branch, China Power Hub Generation Company (PvT) Ltd, China Electric Power Equipment and Technology Company, China Machinery Engineering Corporation, Huaneng Shandong Ruyi (Pakistan) Energy (Pvt) Ltd briefed the media persons about their respective power projects and their contribution towards Pakistan’s economy and for the well-being of the people under corporate social responsibility (CSR).

They also highlighted their contribution towards sustainable climate-friendly initiatives under the Corporate Social Responsibility.

The representatives of Chinese enterprises also suggested the government ensure stability in the country, paving the way for consistent economic policies, apart from ensuring security to all Chinese project sites and market liberalisation.

“If the state manages to do that, then more investment from China and other countries, including the Middle East, would come to Pakistan,” they said.

At the outset of the media talk, Fahd Gauhar Malik, a young entrepreneur of one of the media houses, said that the theme of Infodor Salon on CPEC is based on 3Rs approach – Research, Resonate, and Rethinking.

He assured maximum cooperation to media persons from the platform of All Pakistan Chinese Enterprises Association for nullifying the fake news that appear off and on to help create a positive narrative about the CPEC projects.

The News and Media Director of All Pakistan Chinese Enterprises Association, Su Dong, asked the government to ensure stability in the country paving the way for consistent economic policies, apart from ensuring security to all Chinese project sites, and market liberalisation.

“If the state manages to do that, then more investment from China and other countries including the Middle East would come to Pakistan,” he said.

Business

With its second-largest surge ever, PSX approaches 114,000 points.

Published

2 days ago

Farwa

Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

Business

In interbank trade, the Pakistani rupee beats the US dollar.

Published

1 week ago

Farwa

In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

Published

1 week ago

Farwa

The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.