An MoU on debt re-profiling is expected during the Chinese Premier’s upcoming visit to Pakistan, the sources said on Tuesday.
There is a possibility of re-profiling a $15.4 billion loan for power projects under the CPEC initiative.
Sources revealed that Pakistan proposed the re-profiling of loans for power projects under CPEC, which would increase the overall payment burden on Pakistan by $1.22 billion.
Sources further disclosed that with a five-year extension in payments, the total repayment would rise from $15.4 billion to $16.62 billion. According to sources, Pakistan’s Private Power Infrastructure Board and Chinese companies will sign the MoU.
The proposal for debt re-profiling includes a provision of not making any payments to China for three years. The MoU for debt re-profiling will be approved by the federal cabinet.
The Shanghai Cooperation Organization (SCO) Summit will be held in Islamabad on October 15 and 16, during which the Chinese Premier will also participate. This will mark the first visit by a Chinese Premier to Pakistan in 11 years.
