Visit of Chinese PM: Proposal for reprofiling of $15.4bn CPEC power projects debt ready

Memorandum of understanding in this regard is likely to be signed during visit of Chinese prime minister

By Rana Ghulam Qadir
October 09, 2024
Chinas Premier Li Qiang attends a meeting with US Climate Envoy John Kerry at the Great Hall of the People in Beijing on July 18, 2023. — AFP/File
China's Premier Li Qiang attends a meeting with US Climate Envoy John Kerry at the Great Hall of the People in Beijing on July 18, 2023. — AFP/File

ISLAMABAD: Preparations have been made for re-profiling of $15.4 billion debt of electricity projects under the CPEC during the expected visit of Chinese prime minister to Pakistan this month.

A memorandum of understanding in this regard is likely to be signed during the visit of Chinese prime minister.

The Government of Pakistan has proposed re-profiling of debt for power projects under the CPEC which will increase the overall payment burden of Pakistan by $1.22 billion. As a result of the 5-year extension in payment, the amount of payment will increase from $15.40 billion to $16.62 billion, according to sources.

Pakistan’s Private Power Infrastructure Board and Chinese companies will sign the proposed MoU and approval for the MoU will be taken from the federal cabinet.