Amid IMF loan talks, cash-strapped Pakistan mulls 5-yr extension on $15.5 billion Chinese energy debt

Cash-strapped Pakistan is considering to seek a five-year extension on its $15.5 billion debt in the Chinese energy sector as talks with the IMF for a fresh loan continue. The consent of the Chinese government and Independent Power Producers is crucial for contract amendments, which may involve lengthy negotiations. The extension could lead to a reduction in tariffs for consumers and a rise in outstanding liabilities by $1.3 billion over five years, potentially easing financial burdens and stimulating economic growth.