Pakistan and China Discuss Reforms and Debt Relief Amid IMF-Recommended Adjustments
Islamabad:Finance Minister Mohammad Hammad Azhar and Power Minister Ovais Leghari are currently in Beijing to discuss relief in the power sector loans along with reforms suggested by the International Monetary Fund (IMF).
During this visit, a delegation led by Finance Minister and Power Minister will exchange views on several recommendations, including profiling of approximately $15 billion worth of loans in the energy sector.
Pakistan and China have been allies for a long time. In the past, rollovers on loans from China have helped Pakistan meet its external financial requirements.
It should be noted that IMF has agreed on a $7 billion bailout package for Pakistan last month, while expressing concerns over high rates of theft and losses in electricity distribution.
Implementation of Structural Reforms
Federal Minister Ovais Leghari has stated that the government is implementing structural reforms to reduce circular debt. He informed through a tweet on the social media platform X that Finance Minister Mohammad Hammad Azhar has briefed Chinese Finance Minister Lian Fawan about Pakistan’s efforts to introduce tax and energy reforms.
On the other hand, a statement from Pakistan’s Ministry of Finance mentioned that Azhar briefed Chinese counterpart on Pakistan’s economic reform agenda, efforts to strengthen tax revenue generation, and reforms in energy and state enterprises.
They have given an important role to the agreement between IMF and Pakistan for the implementation of reform agenda.
