Pakistan’s government payables to Independent Power Producers (IPPs) have reached Rs1.2 trillion, including Rs500 billion owed to Chinese power producers, officials disclosed during a public hearing conducted by the National Electric Power Regulatory Authority (NEPRA) on Wednesday.
The hearing, presided over by NEPRA Chairman Waseem Mukhtar, focused on the Central Power Purchasing Agency-Guarantee (CPPA-G) petition regarding the determination of market operator fees for the fiscal year 2025-26. CPPA-G has requested Rs2.887 billion in revenue requirements, excluding prior-year adjustments, and Rs4.664 billion, including those adjustments.
Officials highlighted that the general establishment cost for CPPA-G is projected at Rs2.225 billion, representing a 10.75% increase over FY2024-25. Salaries and benefits are expected to rise by 17%, reaching Rs2.175 billion. Pay and allowances are proposed to total Rs1.627 billion, marking a modest 3% increase due to inflation adjustments, despite staff changes, including the transfer of 20 employees to the Independent System & Market Operation (ISMO) and 26 resignations over the past year. Administrative expenses are projected at Rs322 million, an increase of nearly 7% compared to the previous year.
NEPRA has concluded the hearing and reserved its judgment on the matter.
