Islamabad, Aug 21: The federal government has established a high-level committee made up of important federal ministers to negotiate the rescheduling of a $15 billion energy debt owed to China.
The Secretary of Finance Division, the Minister of Energy, the Minister of Finance, and the Minister of Economic Affairs are members of the committee. Additionally, a subcommittee was established, including of bank representatives, Chinese delegates, and representatives from the Private Power and Infrastructure Board (PPIB) and the Central Power Purchasing Agency (CPPA). Within four weeks, this subcommittee is expected to produce recommendations for the debt rescheduling of Chinese energy projects.
The full committee, under the direction of Finance Minister Muhammad Aurangzeb, will analyze the findings for two weeks following receipt of the subcommittee’s recommendations. Shehbaz Sharif, the prime minister, will then receive the final recommendations.
The recommendations will be transmitted to the federal cabinet for final confirmation if the prime minister approves them. Proposals that could be made include extending the length of the loan installments or other financial agreements.China will be officially notified of the agreed-upon reschedule plan with cabinet approval.
