The Ministry of Finance has established a task force consisting of financial experts from Pakistan and China and government officials to develop an initial plan for reprofiling approximately $8 billion in foreign debt related to China-Pakistan Economic Corridor (CPEC) energy projects.
The debt stock of operational CPEC power projects currently stands at $7 billion, but this figure could reach $10 billion when upcoming projects are included.
The basic aim of the task force is to extend the debt repayment period by five years.
According to a media report, the task force includes the following members: Additional Secretary (Corporate Finance) as Convener/Coordinator; Rihan Akhtar, CEO of Central Power Purchasing Agency (CPPA-G); Usman Hameed, Head of Investment Banking at Habib Bank Limited (HBL); and Zilong Wang, head of the IDB Debt Restructuring Team at China International Capital Corporation (CICC).
The group is tasked with presenting a preliminary plan for the debt reprofiling, assisting in negotiations with Chinese lenders, and finalising a plan acceptable to all parties.
The Power Division has been directed to provide all necessary information to the task force, which will report to a Steering Committee co-chaired by the Finance Minister and the Power Minister.
The Finance Minister has already formed a Steering Committee to oversee power sector financing, with multiple debt reprofiling options under consideration.
