ISLAMABAD: In light of the arrival of an International Monetary Fund (IMF) team to assess Islamabad’s capacity to repay the mounting debt, Pakistan is considering its options for requesting a five-year extension on the $15.36 billion outstanding loan of Chinese Independent Power Producers (IPPs).
Any changes to the current contracts must have the approval of both the Chinese government and the IPPs that are doing business there. This could mean protracted talks to achieve the desired outcomes.
In the event that the administration chooses to formally request something from China, extensive discussions will be necessary. Reducing the tariff for consumers by Rs 1.1 in 2024–2029 and Rs 0.9 in 2030–2040 is one of the choices.
