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Finance Minister Muhammad Aurangzeb Visits China to Reschedule $15 Billion Loan
Finance Minister Muhammad Aurangzeb heads to China to seek rescheduling of a $15 billion loan and discuss the Panda Bond and energy circular debt, aiming to stabilize Pakistan's economy.
ND
by News Desk
2024-07-23
Finance Minister Muhammad Aurangzeb Visits China to Reschedule $15 Billion Loan

Finance Minister Muhammad Aurangzeb is set to begin a significant visit to China today, aiming to negotiate the rescheduling of a $15 billion loan from Beijing, according to well-placed sources.

 

During the visit, a joint working group will be established between Pakistan and China to facilitate the loan rescheduling process. Discussions will also address China’s energy circular debt, which currently amounts to Rs 480 billion.

 

Another key focus of the trip will be the Panda Bond, with Pakistan aiming to secure a $250 million bond during the visit.

 

Earlier this year, China extended a $2 billion loan to Pakistan, which was due in March, for an additional year. This rollover provided temporary relief to Pakistan's struggling economy.

 

Pakistan, grappling with a financial crisis, recently secured a $3 billion standby arrangement from the International Monetary Fund (IMF) last summer. The country's vulnerable external position means securing financing from multilateral and bilateral partners remains a critical priority.

 

Last week, ratings agency Fitch emphasized the importance of securing financing for Pakistan, noting it as one of the most urgent issues facing the next government.

 

Finance Minister Aurangzeb’s visit to China is seen as a pivotal step in stabilizing Pakistan's cash-strapped economy and ensuring financial support from key partners.
Tagged:

Pakistan

China

Economy

finance

LoanRescheduling

PandaBond
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