Chinese investors are requesting Pakistan to place funds in offshore bank accounts to service debts incurred for energy projects under the China-Pakistan Economic Corridor (CPEC), raising concerns and prompting deliberations within Pakistani authorities.
High-level discussions have been held to finalize Pakistan’s stance on these contentious energy-related issues, amidst considerations of potential repercussions from the International Monetary Fund (IMF) and sensitivities surrounding upcoming bailout program talks.
Ahead of an upcoming Joint Working Group (JWG) meeting on Energy in Beijing, concerns were raised regarding Chinese demands by the Governor of the State Bank of Pakistan (SBP), Jameel Ahmad.
China has invested significantly in energy projects in Pakistan, with annual debt and dividend payments totaling around $2.4 billion, prompting Chinese investors to seek assurances through offshore accounts.
Despite financial challenges, including pending dues and fiscal constraints, Pakistan is striving to address concerns raised by Chinese investors to ensure the smooth functioning of CPEC projects.
Proposals for new investments to convert Chinese power plants to local coal have been discussed, albeit with skepticism due to prevailing financial challenges.
