PM Shehbaz to “Engage” with Chinese Banks for $600m Loan

PM Shehbaz Sharif and Finance Minister to Negotiate $600 Million Loan with Chinese Banks

Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb are set to engage in crucial talks with Chinese banks to secure a $600 million loan.

The Prime Minister will actively negotiate with the Commercial Bank of China and Industrial and Commercial Bank of China to finalize the loan agreement with favorable terms for Pakistan.

Previously, negotiations with the banks had failed due to the stringent conditions set by the Chinese banks, which Pakistan is now seeking to relax.

The government has been actively pursuing talks with the Chinese banks since July 2023 to secure the loan, which is now being sought for the next fiscal year.

During his visit to China, Prime Minister Shehbaz Sharif will address the Pakistan-China Friendship and Business Reception and meet with key officials from China International Development Agency, China Exim Bank, China Power, China Energy, China Road and Bridge Corporation, and China Construction and Communication Corporation.

The Prime Minister and Finance Minister are determined to secure the loan with relaxed conditions, including a revised payment schedule for Chinese IPPs and a reduced interest rate of up to 8%.

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