FinMin to visit China amid Pakistan’s efforts for rescheduling $15bn loan

Islamabad: Finance Minister Muhammad Aurangzeb would embark on a visit to China starting on Tuesday (today).

The sources close to the development said that the finance minister’s visit to China aimed at Pakistan’s efforts for rescheduling of $15bln loan from Beijing.

They said that a joint working group would be set up between Pakistan and China to facilitate the loan rescheduling.

The sources said that the discussions would address China’s energy circular debt, which currently amounts to Rs480 billion.

The Finance Minister would also engage in talks regarding the Panda Bond. Pakistan aims to secure a $250 million Panda Bond during this visit.

China earlier this year had rolled over a $2 billion loan to Pakistan.

The $2 billion loan was due in March and was extended for one year. Beijing had communicated the decision to Islamabad, it added.

Pakistan is making attempts to stabilise from a financial crisis. Pakistan also secured a $3 billion standby arrangement from the International Monetary Fund last summer.

Rating agency Fitch last week had said that Pakistan’s vulnerable external position meant that securing financing from multilateral and bilateral partners would be one of the most urgent issues facing the next government.