Published on, Sept. 29 -- September 29, 2025 8:53 AM

Pakistan has informed the International Monetary Fund (IMF) that it will not pay Rs220 billion to Chinese independent power plants (IPPs) as interest on delayed payments for purchased electricity and will instead seek a waiver from Beijing.

The government also told the IMF that despite better power sector performance in the last fiscal year, over Rs500 billion more will be added to the flow of circular debt. The flow can only be zeroed by pumping money from the budget.

The Power Division gave a briefing on the fiscal and operational status of the power sector during the second day of talks, according to energy ministry sources. The talks are expected to release $1.2 billion in two lo...