China has urged Pakistan to urgently clear approximately $220 million in outstanding payments owed to United Energy Pakistan (UEP), warning that continued delays could undermine investor confidence and disrupt operations, according to The News, citing official sources.
Officials in the Petroleum Division said Pakistan’s ambassador in Beijing conveyed the matter through an urgent communication, noting that the dues relate to gas supplied by UEP to the Sui Southern Gas Company (SSGC). The company currently supplies around 260–270 million cubic feet per day (MMcfd). Reports suggest that liquidity constraints have already forced UEP to reduce its workforce in recent weeks.
The Special Investment Facilitation Council (SIFC) has also intervened, calling for the immediate settlement of dues to safeguard foreign investment sentiment in the country’s energy sector. However, SSGC maintains that it is awaiting billions of rupees in refunds from the Federal Board of Revenue (FBR), which it says must be cleared before payments to UEP can be made.
UEP, which expanded its operations in Pakistan after acquiring BP Pakistan’s assets in 2011 and later OMV’s gas fields in 2018, remains one of the country’s major foreign exploration and production companies, with significant operations across Sindh and offshore blocks in the Arabian Sea.
Officials and analysts caution that unresolved payment issues could add further pressure to Pakistan’s energy sector, where liquidity challenges and circular debt remain key structural concerns, while also affecting investor sentiment at a time when the country is seeking to attract and retain foreign capital.