Finance Minister Muhammad Aurangzeb will begin a visit to China today, as Pakistan seeks to reschedule its $15 billion loan from Beijing, according to InShort News sources.
During the visit, a joint working group will be formed between Pakistan and China to facilitate the loan rescheduling. The discussions will also address China’s energy circular debt, which stands at Rs 480 billion.
Additionally, the Finance Minister will negotiate a Panda Bond, with Pakistan aiming to secure $250 million in this visit.
Earlier this year, China rolled over a $2 billion loan to Pakistan, extending it for one year. This loan, originally due in March, was extended as per Beijing’s decision communicated to Islamabad.
Amidst a financial crisis, Pakistan has secured a $3 billion standby arrangement from the International Monetary Fund last summer. As the country’s economy remains fragile, securing financing from international partners will be crucial for the next government, as noted by Fitch Ratings last week.
