According to reports, more than two dozen Chinese firms are operating in Pakistan. On Monday, companies said they would have to shut down their power plants as their dues to the Pakistani government exceeded Rs 300 billion. The companies have warned that they will not start their power plants until these are paid. 30 Chinese companies have entered Pakistan through the China-Pakistan Economic Corridor.
Chinese companies threatened in the meeting
These Chinese companies are involved in major sectors like energy, communication, railways of Pakistan. On Monday, a meeting with Chinese companies was held under the chairmanship of Pakistan’s Planning and Development Minister Ehsan Iqbal, in which the companies clearly threatened the Government of Pakistan. In this meeting, companies presented their grievances related to complicated visa procedures and tax with the Pakistani minister.
The company raised the demand for advance payment
Pakistani officials said that the country needs more electricity due to the rising heat, so they should increase production. But the companies refused this due to the outstanding amount. The companies raised the demand for advance payment, citing the three to four-fold increase in fuel prices, especially coal prices. The coal producer said that the storage of coal is less and if production is increased due to pressure from the officials, then the remaining coal will be exhausted in a few days.
Chinese companies troubled by expensive tax rates
The companies said that the last payment for electricity has not been made yet. They have been financially weakened by the Corona pandemic and the high tax rates are creating new difficulties for them. However, the minister assured the companies that Pakistan Prime Minister Shahbaz Sharif himself has taken cognizance of the matter and asked them to make payment at the earliest.