Govt Pays Off Outstanding Dues to Nishat Chunian Power Ltd

Islamabad, April 3, 2025 – The Central Power Purchasing Agency (CPPA) has cleared outstanding dues owed to Nishat Chunian Power Limited (PSX: NCPL), bringing much-needed financial relief to the independent power producer (IPP). The company disclosed the development in a notification to the Pakistan Stock Exchange (PSX) on Thursday.

The payment is part of the government’s broader effort to settle outstanding liabilities owed to the power sector and ensure financial stability among IPPs, which play a crucial role in electricity generation for the national grid.

Relief for the Power Sector

Nishat Chunian Power Limited, a major IPP operating under Pakistan’s power purchase agreements (PPAs), had been facing liquidity constraints due to delayed payments. The clearance of dues will help the company manage operational expenses, improve cash flow, and continue supplying electricity without disruption.

The company, in its PSX filing, stated:
“We appreciate the government’s efforts in clearing pending dues, which will aid in ensuring smooth operations and financial sustainability in the power sector.”

Impact on Energy Sector

Pakistan’s power sector has been grappling with circular debt, where delayed payments create financial bottlenecks across the energy supply chain. The government has been working to address these challenges by making overdue payments to power producers, reducing debt accumulation, and improving power sector efficiency.

Analysts believe that settling dues with IPPs like NCPL will:

• Improve investor confidence in the power sector.
• Ensure steady electricity supply without financial disruptions.
• Enhance operational efficiency of power producers.

Future Outlook

The government has reiterated its commitment to clearing dues to other IPPs as well, ensuring that the power sector remains financially viable. Energy sector experts emphasize that while paying off dues is a positive step, long-term power sector reforms are essential to prevent recurring financial crises.

With payments now reaching Nishat Chunian Power Limited, the power sector moves one step closer to financial stability, ensuring continued electricity supply for industries and consumers alike.