Finance minister upbeat about positive nod from China on debt repayments

WASHINGTON: Finance Minister Muhammad Aurangzeb has said that China has given a positive response to Pakistan regarding its debt repayments.

Speaking to the media in Washington, he shared that China has responded favourably to Pakistan’s request for rescheduling the power sector loans.

“We have just begun discussions, and the response so far has been encouraging,” he said.

In a conversation with the IMF director, the finance minister said that tax evaders would be brought into the tax net.

He highlighted that pensions remain a significant burden for Pakistan and that the federal government’s expenditure was being reduced.

Also read: Govt debt grows by Rs276 billion, total for FY25 reaches Rs1.26 trillion

“We want to rely on investment instead of aid, and loss-making institutions will be privatized,” he said.

According to the Ministry of Finance, in his address at the G24 Ministers’ meeting in Washington, the finance minister stressed the need to resolve the issue of heavy debt burdens on developing countries.

He also called for joint efforts to tackle climate change challenges faced by developing nations, including Pakistan.

During the annual meetings of the IMF and World Bank in Washington, the finance minister also met with his Saudi counterpart. Both of them expressed their commitment to increasing bilateral trade, easing investment in key sectors, and enhancing cooperation in areas of mutual interest.

Aurangzeb also held a meeting with a Citibank delegation where they discussed reforms in the energy, pension, and government downsizing sectors.