ISLAMABAD: In ongoing discussions regarding the transition from the London Inter-bank Offered Rate (LIBOR) to the Secured Overnight Financing Rate (SOFR), Chinese lenders financing Independent Power Producers (IPPs) under the China-Pakistan Economic Corridor (CPEC) have agreed to adopt daily SOFR but rejected the Term SOFR option.
During a suo motu hearing by the National Electric Power Regulatory Authority (NEPRA), it was revealed that 22 IPPs had yet to submit their responses. NEPRA is reviewing the transition’s impact on consumers and the government. The shift from LIBOR to SOFR was approved by the Economic Coordination Committee (ECC) earlier this year, offering IPPs two transition options.
Story by Zafar Bhutta
