Pakistan’s IPPA urges PD to Raise PKR 200 Billion Sukuk to Settle Overdue Payments to the IPPs

Independent Power Producers Association (IPPA) has requested Power Division (PD) to expedite Pakistan Energy Sukuk-II of PKR 200 billion to settle sizeable overdue amounts owing to Independent Power Producers (IPPs), which are approaching default status.

Local media reported that the total amount due to the IPPs amounted to PKR 331 billion, out of which PKR 135 billion related to Capacity Payment Price (CPP) while another PKR 85 billion was in lieu of late payment interest (LPI) and other overdue amounts.

According to IslamicMarkets Sukuk Monitor, Pakistan Energy Sukuk-I (Sukuk-I) was issued in March 2019 to raise PKR 200 billion, and this was used to settle outstanding dues to fuel...