Pakistan’s power sector is once again facing financial pressure, as the Water and Power Development Authority (Wapda) has asked the Central Power Purchasing Agency–Guaranteed (CPPA-G) to increase its monthly payments to Rs. 17 billion.
The request aims to ensure timely transfer of Net Hydel Profit (NHP) to the governments of Khyber Pakhtunkhwa (KP) and Punjab, along with supporting Wapda’s own operational needs.
According to Wapda officials, the authority’s hydroelectric receivables have climbed to nearly Rs233 billion by the end of October 2025. A large portion of this amount relates to delayed NHP payments, overdue energy invoices and long-standing hydroelectric arrears.
Wapda says the delays have created a serious cash-flow crunch, especially because CPPA-G is currently settling invoices that are nearly a year old.
The authority explained that it has continued paying KP its NHP share even during irregular fund releases. In FY 2024-25 alone, Wapda paid Rs36 billion to the province.
However, it now says the existing monthly funds are too low to keep paying Rs3 billion each to KP and Punjab while also covering essential expenses like operations, maintenance, development activities, and debt payments.
The issue has become more complicated due to past adjustments of circular debt. Wapda claims that an unbilled circular debt amount linked to the Diamer-Bhasha Dam was cleared using energy receivables instead of non-energy receivables, tightening finances even further.
At the same time, the KP government has separately reached out to Prime Minister Shehbaz Sharif for help in resolving the long-running NHP dispute.
The province reminded the federal government that the Kazi Committee Methodology used to calculate NHP has been endorsed multiple times by the Council of Common Interests (CCI) and upheld by the Supreme Court. KP says inconsistent payments have left it with a shortfall of Rs75 billion.
To move forward, a federal “Out-of-the-Box Committee” is reviewing proposals from all sides, with KP already submitting its recommendations to the Planning Commission.
Both provinces and Wapda now await a workable solution that can ease financial strain and stabilize hydropower revenue flows across the country.