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China in Pakistan’s Power Sector: The Hidden Costs Behind Pakistan’s Energy Overcapacity

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China in Pakistan’s Power Sector: The Hidden Costs Behind Pakistan’s Energy Overcapacity - The Diplomat

Quick Summary:

Contracts with Chinese power producers have left Pakistan footing a massive bill for inefficient supply – all while electricity shortfalls continue.

Highlights of the policy were 15-18 percent dollarized returns on equity, capacity, and energy payments by Pakistan’s Water and Power Development Authority (WAPDA), low taxes, and Foreign Exchange Risk Insurance (FERI) from the state bank.

CPEC signed in 2014 had power generation as one of the key components alongside a network of roads, rails, and business parks.  China’s priority was in the connectivity projects, but Pakistan’s government wanted much of the initial CPEC financing to go toward energy.


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Article Details

Author / Journalist: Nishant Yadav

Category: Economy

Markets:

Topics:

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-01-18 @ 00:15:00 (1 days ago)

News Timezone: GMT +8:00

News Source URL: thediplomat.com

Language: English

Article Length: 3116 words

Reading Time: 18 minutes read

Sentences: 144 lines

Sentence Length: 22 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © The Diplomat

News ID: 25236117

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Official Website: thediplomat.com

Year Established: 2001

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News Last Updated: 1 days ago

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Publisher ID: #70

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