ISLAMABAD: Pakistan and Chinese power companies are set to sign agreements on debt reprofiling and a moratorium on over $16 billion in payments during Chinese Premier Li Qiang’s upcoming visit, sources from the Private Power and Infrastructure Board (PPIB) have revealed.
The agreements, involving nine power projects and one transmission line under the China-Pakistan Economic Corridor (CPEC), will aim to rationalize Pakistan’s rising electricity tariffs. The proposed deal includes a five-year extension on debt repayments and a three-year moratorium on principal payments.
Following meetings between Pakistan’s Energy and Finance Ministers and Chinese officials in July 2024, the terms were finalized by a task force. The reprofiling is expected to boost financial sustainability in Pakistan’s power sector. Final approval will be sought from Pakistan’s federal cabinet before the agreement is signed.
Story by Mushtaq Ghumman
