Prime Minister Shahbaz Sharif and Finance Minister Muhammad Aurangzeb have embarked on discussions with Chinese banks to secure a $600 million loan, as reported by sources. The prime minister is set to engage with the Commercial Bank of China and Industrial and Commercial Bank of China in pursuit of this financial agreement.
Sources reveal that previous negotiations with the Chinese banks faced obstacles due to stringent conditions imposed by the lenders. Pakistan aims to alleviate these challenges, particularly concerning the payment schedule for Chinese Independent Power Producers (IPPs) and the interest rate, which could potentially reach up to 8%.
The government has been actively engaged in talks with Chinese banks since July 2023, with the objective of securing the loan for the upcoming fiscal year. The ongoing negotiations seek to finalize the $600 million loan agreement with terms favorable to Pakistan’s financial interests.
Prime Minister Shahbaz Sharif’s visit to China underscores the significance of these loan discussions. During his stay in Beijing, the prime minister is scheduled to address the Pakistan-China Friendship and Business Reception, fostering bilateral ties and economic cooperation.
Prime Minister Shahbaz Sharif is slated to meet with key stakeholders, including heads of China International Development Agency, China Exim Bank, China Power, China Energy, China Road and Bridge Corporation, and China Construction and Communication Corporation. These meetings aim to explore opportunities for collaboration and investment between Pakistan and China.
