Nishat Chunian Power Limited (NCPL) has received payment of its outstanding receivables from the Central Power Purchasing Agency (CPPA), the company announced in a filing to the Pakistan Stock Exchange on Thursday.

“CPPA has made payment of outstanding receivables to the Company, as agreed in the Amendment Agreement,” NCPL stated in its notification to investors.

The payment follows NCPL’s decision in December 2024 to convert its existing tariff structure to a ‘Hybrid Take and Pay’ model. As part of this agreement, the company consented to execute an amended power purchase agreement with CPPA, which included assurances of full payment of outstanding dues.

NCPL has been operating under a 25-year Power Purchase Agreement with CPPA-G, its sole customer, since July 21, 2010. The agreement is set to continue until 2035.

This development represents a positive step for NCPL’s cash flow position and comes amid ongoing efforts by the government to address circular debt issues in Pakistan’s energy sector through revised agreements with independent power producers.

The company did not disclose the exact amount received in the settlement.