Islamabad Capital Territory

Islamabad | ReNews National Desk Prime Minister Muhammad Shehbaz Sharif has convened a high-level meeting to review outstanding payments of approximately Rs 500 billion owed to power projects established under the China-Pakistan Economic Corridor (CPEC), amid growing financial pressures on the country's electricity sector. According to reports citing official sources, the meeting will examine outstanding power-sector liabilities, the financial position of CPEC electricity projects and payments pending to Chinese power producers operating in Pakistan. The reported arrears have reached approximately Rs 500 billion, with the Central Power Purchasing Agency-Guaranteed (CPPA-G) facing difficulties in settling the outstanding amounts because of financial constraints. Chinese power companies have repeatedly approached the relevant authorities through official correspondence, seeking payment of their accumulated receivables. Some operators have warned that prolonged payment delays could undermine their ability to meet debt-servicing obligations and maintain financially sustainable operations. Earlier reports published on October 19 indicated that outstanding dues owed to CPEC power projects had reached approximately Rs 498 billion. Among the affected companies is Port Qasim Electric Power Company (PQEPC), which operates a 1,320-megawatt coal-fired power plant developed under CPEC. According to a letter dated September 29, 2026, the company reported outstanding electricity payments of approximately Rs 79 billion, with some payments delayed for more than six months. PQEPC Chief Executive Officer Wang Dongfeng approached the federal ministers responsible for finance, planning and energy, requesting urgent government intervention to secure the release of the pending payments. The company warned that continued delays could affect the project's financial sustainability and potentially lead to defaults under loan agreements and government-backed financial obligations. Similarly, the 1,320-megawatt Sahiwal coal-fired power plant has reportedly accumulated approximately Rs 80 billion in outstanding receivables. The project's Chinese operator has also approached government authorities seeking settlement of unpaid amounts and resolution of longstanding disputes relating to electricity payments. The combined reported receivables of the Port Qasim and Sahiwal projects stand at approximately Rs 159 billion, accounting for a substantial portion of the overall outstanding payments to CPEC power producers. Financial pressures have also affected renewable energy projects developed under the economic corridor. UEP Wind Power, a 99-megawatt CPEC wind energy project, has requested approximately Rs 5.824 billion from CPPA-G to meet financial obligations, including loan repayments, operational expenses and other liabilities. The company has warned that insufficient cash flow could increase the risk of default if outstanding payments are not released in time. The accumulation of unpaid electricity bills is linked partly to financial constraints within the power sector, including inadequate recoveries by electricity distribution companies. These financial pressures have reduced the purchasing agency's ability to settle payments to independent power producers, increasing liquidity concerns for companies operating major generation projects. According to government sources, key federal ministers and senior officials from the relevant departments are expected to participate in the prime minister's meeting.

Islamabad | ReNews National Desk Capital Development Authority (CDA) Chairman Sohail Ashraf has directed officials to upgrade facilities at Faisal Mosque, with particular attention to cleanliness, public conveniences and maintenance of its surroundings. During a visit on Tuesday to review ongoing renovation and beautification work, the chairman instructed the relevant departments to complete necessary repairs, maintain existing infrastructure and ensure essential facilities remain functional and accessible. The directives covered improved sanitation, upkeep of pathways and surrounding areas, and adequate canteen facilities for visitors. Ashraf also called for better landscaping and maintenance of green spaces to provide a welcoming environment for worshippers and domestic and international tourists. He stressed that the renovation should preserve Faisal Mosque’s distinctive architectural design and spiritual significance while improving visitor comfort. Officials were instructed to maintain construction quality and complete the work on time. To support implementation, the chairman called for close coordination among the relevant CDA departments, National Engineering Services Pakistan (NESPAK) and ESCP. He also directed officials to monitor progress regularly and ensure continued maintenance of the upgraded facilities. Senior representatives from the CDA’s building, services, engineering and maintenance departments attended the inspection, alongside the chief executive officer of the Metropolitan Corporation Islamabad and officials from NESPAK and ESCP. The report did not specify a project budget or completion date.

Islamabad | ReNews Pakistan Federal Board Approves SEZ Status for 6,409-Acre Karachi Industrial Park The project will use Pakistan Steel Mills land near Port Qasim to attract manufacturing investment, but t Islamabad | ReNews Pakistan The federal government has approved Special Economic Zone (SEZ) status for the 6,409-acre Karachi Industrial Park (KIP), planned on Pakistan Steel Mills land near Port Qasim. The decision gives the project a formal investment framework, while its development will depend on the provision of infrastructure and the arrival of investors. The Board of Approvals for Special Economic Zones approved the application at its 11th meeting on October 23, 2026. Finance Minister Senator Muhammad Aurangzeb chaired the meeting. The government aims to attract local and foreign manufacturers to the site, with a focus on export-oriented production, value addition, technology transfer and employment. Its location near Port Qasim could support access to shipping routes and imported inputs. The immediate challenge is turning the designation into an operational industrial estate. The approval announcement did not specify a construction schedule, utility delivery dates, financing arrangements for the full site or confirmed investors. Earlier planning envisaged development in phases. The initial concept covered 1,500 acres, while a 500-acre block—estimated to cost Rs 7.40 billion—was approved by the Central Development Working Party in February 2025. The latest SEZ decision covers the wider 6,409-acre area; it does not, by itself, establish that the entire site is ready for development. At the same meeting, the board approved general criteria for government-funded provision of essential infrastructure to eligible privately developed SEZs. Under the Special Economic Zones Act, 2012, support may include roads, electricity, gas and water up to a zone’s designated zero point, subject to case-by-case consideration. The board also approved a land lease policy for public-sector SEZs and industrial estates in Punjab. The policy is intended to lower upfront land costs and encourage longer-term industrial investment. The Special Investment Facilitation Council has supported the Karachi project as part of broader investment and industrial development efforts. The Finance Ministry’s announcement, however, did not identify direct IMF financing or a specific IMF investment approval for the park. The project’s progress will therefore hinge on implementation: infrastructure delivery, clear land and lease arrangements, investor commitments and a predictable policy framework.