Finance Minister Muhammad Aurangzeb announced that Pakistan’s request to extend debt payments in the energy sector has received an encouraging response from China, according to a report by Bloomberg. This extension, once approved, is expected to provide significant financial relief as the country struggles with soaring electricity costs, which have tripled for some consumers in recent years.

Speaking at the International Monetary Fund and World Bank meetings in Washington, the Finance Minister noted that discussions with Chinese officials are still in the early stages. The goal is to extend the repayment period for loans related to power plants, which would enable the government to lower electricity prices.

In addition to addressing energy sector debt, the Finance Minister reiterated the importance of increasing Pakistan’s tax-to-GDP ratio to 13.5 percent. New tax measures targeting sectors such as retail and agriculture are anticipated to be implemented soon.

The extension of debt maturities is part of the federal government’s broader strategy to tackle economic challenges, including rising inflation and interest rates. The central bank has already reduced its benchmark interest rate to 17.5 percent, with another cut expected at the upcoming meeting on November 4.