Washington D.C, October 23,2024- Federal Finance Minister Muhammad Aurangzeb has disclosed that Pakistan has received a “promising response” from China regarding its request to reprofile power sector debt, aimed at creating fiscal space to reduce electricity prices.
“We have just initiated the discussions, and the response is encouraging,” the minister said in an interview, while emphasizing the importance of continuing structural reforms.
He explained that Pakistan is seeking to extend the maturity of debt for nine power plants constructed by Chinese companies under the China-Pakistan Economic Corridor (CPEC). China has already rolled over $16 billion of Pakistan’s debt out of a total $26 billion for the current fiscal year.
Aurangzeb holds talks with Saudi, Turkish counterparts to boost trade and investment
In parallel, Aurangzeb met with Saudi Finance Minister Mohammed Aljadaan to discuss expanding bilateral trade and investment in critical sectors. Both ministers underscored the historical ties between Pakistan and Saudi Arabia and agreed to enhance cooperation, particularly in energy and other areas of mutual interest. Aljadaan shared insights into Saudi Arabia’s energy sector reforms, which could offer valuable lessons for Pakistan as it embarks on its own energy sector overhaul.
Aurangzeb also held discussions with Turkey’s Treasury and Finance Minister Mehmet Simsek, inviting Turkish companies to explore joint ventures with Pakistani firms. He highlighted the potential for expanding bilateral trade and praised Turkey’s experience in power sector reforms, expressing Pakistan’s interest in learning from their success.
These discussions reflect Pakistan’s strategic efforts to secure debt relief and deepen economic partnerships with key global allies, aiming to strengthen its economy and unlock new opportunities for trade and investment.
