With the arrival of an IMF team to gauge Islamabad’s capability to repay the escalating debt, Pakistan is contemplating options to seek a 5-year extension in the tenor of Chinese IPPs’ outstanding debt of $15.36 billion. The consent of the Chinese government as well as its IPPs operating in the country is mandatory to alter the existing contracts, which might require long negotiations to clinch the desired results. “If the government decides to make a formal request to China, then it will require long negotiations. One of the options is to reduce the tariff for consumers by Rs1.1 from 2024-2029, and Rs0.9 from year 2030 to 2040. (The News)
17/5/2024