Pakistan Ready to Negotiate Re-profiling $15 Billion Power Sector Debt With China

Pakistan is ready to negotiate the re-profiling of $15.4 billion power sector debt under the China-Pakistan Economic Corridor (CPEC). This restructuring is expected to be discussed and formalized during the Chinese prime minister’s visit to Pakistan later this month. The Government of Pakistan has proposed extending the repayment period for these power projects by five years, which would increase the overall payment burden by $1.22 billion and raise the total payment amount to $16.62 billion. An MoU detailing this re-profiling is likely to be signed between Pakistan’s Private Power Infrastructure Board and Chinese companies during the visit. If successful, the agreement will be submitted to the federal cabinet for operational approval.