Finance Minister Muhammad Aurangzeb will visit China today on a three-day visit, with the sole objective to restructure over $15 billion in energy debt owed to the Chinese government.
Sources told ProPakistani that Aurangzeb will also try to engage Chinese officials in setting up a joint working group between both countries to facilitate the debt rescheduling process.
Pakistan wants a five-year extension on the repayment of Chinese energy debt. This extension would increase payment to China by an additional $1.3 billion, bringing the total to $16.6 billion by 2040.
The government wants to expand the timeframe for making debt repayments, potentially reducing foreign currency outflows to $750 million annually.
Besides energy debt, the Finance Minister’s agenda includes talks on the Panda Bond, with Pakistan aiming to launch a $30 million bond in the Chinese money market. The Panda Bond is a strategic financial instrument that Pakistan hopes will help bolster its economy.
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