China Demands Pakistan Clear $220 Million Energy Liability as pressure mounts on Islamabad to settle overdue payments. The $220 million overdue payment relates to gas supplied by UEP to Sui Southern Gas Company. Pakistan’s ambassador in Beijing communicated the urgency, highlighting risks to investor confidence in Pakistan’s energy.
The outstanding dues affect the Pakistan-China energy relations and could impact foreign investment in the Pakistan energy sector. UEP, a subsidiary of United Energy Group, provides 260–270 million cubic feet of gas per day. Delays have forced UEP layoffs due to delayed payments, raising concerns about Pakistan’s energy sector liquidity crisis.
Pakistan’s Special Investment Facilitation Council (SIFC) has urged an immediate resolution. Officials say timely payment is critical to sustaining operations and protecting external capital attraction. SSGC’s ability to pay is limited by pending Federal Board of Revenue tax refunds, which must be cleared first. UEP’s upstream energy sector expansion includes gas fields in Sindh and offshore exploration blocks in the Arabian Sea. The company also benefited from a China Development Bank credit line to support local operations.
The payment dispute also ties back to UEP’s earlier acquisitions, including the BP Pakistan asset acquisition in 2011 and the OMV Pakistan gas field purchase for $192 million. Resolving the dues quickly is vital to maintain investor confidence and prevent regulatory and financial pressures from worsening. Failure could slow energy projects and deter future Chinese energy investment in Pakistan.
In conclusion, China demands that Pakistan Clear $220 Million Energy Liability to protect both bilateral ties and investor interests. Rapid action on UEP payments can stabilize Pakistan’s energy sector and attract further foreign capital.
