Prime Minister Shehbaz Sharif Seeks $600m Loan from Chinese Banks

Islamabad: Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb are slated to engage in discussions with Chinese banks for a $600 million loan.

Sources reveal that the prime minister will initiate talks with the Commercial Bank of China and the Industrial and Commercial Bank of China to secure the loan.

Previous negotiations with these banks reportedly faltered due to stringent conditions they imposed.

Pakistan aims to ease the stringent conditions set by the Chinese banks, which include the payment schedule for Chinese Independent Power Producers (IPPs) and an interest rate of up to 8%.

The government has been in discussions with the Chinese banks since July 2023 to secure the loan, which is now being sought for the upcoming fiscal year. Negotiations seek to finalize a $600 million loan agreement with favorable terms for Pakistan.

Prime Minister Shehbaz Sharif's current visit to China includes a busy day in Beijing, where he will address the Pakistan-China Friendship and Business Reception. Additionally, he is scheduled to meet with key figures from China International Development Agency, China Exim Bank, China Power, China Energy, China Road and Bridge Corporation, and China Construction and Communication Corporation.