ISLAMABAD: Pakistan is set to re-profile $15.4 billion of debt tied to electricity projects under the China-Pakistan Economic Corridor (CPEC) during the upcoming visit of the Chinese Prime Minister later this month.
A memorandum of understanding (MoU) regarding the debt restructuring is expected to be signed during the visit. The Government of Pakistan has proposed a 5-year extension in the debt repayment schedule, which will increase the overall payment burden by $1.22 billion, raising the total repayment amount from $15.4 billion to $16.62 billion.
The MoU will be signed between Pakistan’s Private Power Infrastructure Board (PPIB) and Chinese companies, with federal cabinet approval to follow, according to sources.
Story by Rana Ghulam Qadir
