ISLAMABAD – Finance Minister Muhammad Aurangzeb is visiting China for three days to negotiate the restructuring of $15 billion in energy debt owed to the Chinese government.
Pakistan aims to extend the repayment period by five years, increasing the total debt to $16.6 billion by 2040 and potentially reducing annual foreign currency outflows to $750 million.
Aurangzeb will also propose forming a joint working group between Pakistan and China to simplify the debt rescheduling process.
Additionally, they will discuss introducing a $30 million Panda Bond in the Chinese financial market to support Pakistan’s economic growth.