Finance Minister seeks $15b energy loan deferment in China

ISLAMABAD: Finance Minister Muhammad Aurangzeb is set to embark on a three-day visit to China n Tuesday (today) to discuss the rescheduling of energy loans amounting to $15 billion.

According to sources, the visit aims to address issues related to Pakistan’s energy debt, which stands at approximately Rs500 billion.

During the visit, discussions are expected to focus on establishing a Pakistan-China Joint Working Group specifically dedicated to managing and rescheduling this substantial debt.

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The finance minister will also reportedly engage in talks regarding the issuance of a $30 million panda bond in China, a move aimed at bettering financial ties between the two nations.

Sources indicate that the visit will also include discussions on the Prime Minister’s package, which involves halting excise duty and the sale of sugar at utility stores.

It is reported that the International Monetary Fund’s (IMF) conditions for rescheduling China’s outstanding debt include a stipulation for a three-year plan, which will likely be a focal point of the discussions.

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Aurangzeb also reportedly plans to present a letter from the Pakistani PM to Chinese authorities.