ISLAMABAD: The Pak-Matiari Lahore Transmission Company (Private) Limited (PMLTC) has asked the Central Power Purchasing Agency–Guaranteed (CPPA-G) and the National Grid Company (NGC) to clear overdue payments amounting to Rs 60.752 billion under the Transmission Services Agreement (TSA).
In a letter to the Managing Director of NGC, PMLTC Chairman and Chief Executive Officer Xiong Feng referred to the TSA dated May 14, 2018, which is legally binding on both parties. He cited Section 9.5 (Payment) of the agreement, which requires the purchaser to pay the invoiced amount within 30 days of receipt.
The company stated that despite the clear contractual obligation, the purchaser/NGC is still settling sales tax payments for the period July 2023 to January 2025. According to PMLTC, NGC has so far made only partial payment of the Transmission Service Provider (TSP) invoice for August 2025, which became overdue on October 1, 2025. Invoices for September, October, November and December 2025, as well as January 2026, also remain outstanding.
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As of February 23, 2026, the total outstanding amount — including interest on delayed payments — has reached Rs69.739 billion (inclusive of sales tax), of which Rs60.752 billion is overdue.
The PMLTC emphasised the critical importance of timely payment of transmission service charges, stating that the funds are essential to meet ongoing operations and maintenance (O&M) expenses necessary for the stable operation of the HVDC transmission project.
The company further noted that the next installment of principal and interest repayment to its lenders will fall due on April 15, 2026. Given the current cash shortfall and the time required to obtain approval from the State Bank of Pakistan for conversion into US dollars, the PMLTC has requested a minimum daily payment of Rs 1 billion (exclusive of sales tax) from February 23, 2026 to March 31, 2026, solely to meet debt servicing requirements.
In view of the situation, the transmission company has strongly urged NGC and CPPA-G to expedite settlement of outstanding invoices and strictly adhere to the payment terms stipulated in the TSA to avoid any adverse impact on project operations.
Copyright Business Recorder, 2026
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