Pakistan is set to enter negotiations for the re-profiling of $15.4 billion in power sector debt under the China-Pakistan Economic Corridor (CPEC). This significant restructuring is anticipated to be a key agenda item during the upcoming visit of the Chinese Prime Minister to Pakistan later this month.

The Government of Pakistan has proposed extending the repayment period for these power projects by five years. While this extension would increase the overall payment burden by $1.22 billion, it would raise the total repayment amount to $16.62 billion.

A Memorandum of Understanding (MoU) outlining the terms of this re-profiling is expected to be signed between Pakistan’s Private Power Infrastructure Board and Chinese companies during the visit. Should the negotiations prove successful, the agreement will be presented to the federal cabinet for operational approval.

This move is part of Pakistan’s broader strategy to manage its financial obligations under CPEC, ensuring sustainable economic collaboration with China