IMF denies asking Pakistan to renegotiate with China IPPs pacts

ISLAMABAD: International Monetary Fund (IMF) Resident Representative for Pakistan Esther Perez Ruiz on Thursday denied the claims that it had asked Pakistan to review the contracts with the Chinese Independent Power Producers (IPPs) for the China-Pakistan
Economic Corridor (CPEC).
In a statement released by the global lender’s representative after printing of a report by a section of the press, Ruiz categorically rejected what was quoted in the report and termed such claims as untrue.
She added that the global lender supports a multidimensional strategy for restoring the energy sector with equal sharing of the burden on the government, producers, and consumers.
On May 30 Prime Minister Shehbaz Sharif had directed the authorities to immediately release Rs50 billion to Chinese IPPs as maiden installment of outstanding dues of Rs340 billion.
However, some media reports had claimed that the IMF took exception to it and asked Pakistan to renegotiate deals with Chinese IPPs as they were charging the country exorbitantly.
The report said that the IMF had asked the government to renegotiate energy deals under CPEC ahead of payments of Rs300 billion to Chinese IPPs.
The report quoting ‘highly placed sources’ read that the IMF “suspected that the Chinese IPPs might have been overcharging Pakistan and there was a need to reopen these deals.” – NNI