Islamabad: The Finance Division has rejected the Power Division’s request for PSDP allocations in FY 2025-26 to reduce power sector loans, citing constrained fiscal space. During a recent ECC meeting, the Power Division sought non-cash adjustments but was advised to re-submit after consultations with the Economic Affairs Division and Ministry of Planning. The ECC directed routing energy-related issues through the Cabinet Committee on Energy for better coordination.
In a major relief move, the ECC approved MoUs with nuclear power plants (NPPs) and three government-owned plants (Haveli Bahadur Shah, Balloki, Quaid-e-Azam), waiving late payment interest (LPI) claims up to December 31, 2024. PAEC and GPPs relinquished all LPI rights; from January 1, 2025, delayed payments will carry 3-month Kibor + 1%.
CPPA-G cleared Rs614.92 billion to GPPs, with Rs140 billion outstanding as of July 31, 2025. It is authorized to retire PHL’s Rs683.25 billion debt using circular debt financing. Revised LPI waiver for GPPs stands at Rs116.83 billion (up from Rs87.58 billion). CPPA-G will settle Rs23.6 billion PHL loans and waive Rs114.15 billion LPI. NEPRA petitions by PAEC are approved for tariff rationalization.