PM Shehbaz to 'engage' with Chinese banks for $600m loan

Prime Minister (PM) Shehbaz Sharif and Finance Minister Muhammad Aurangzeb will hold talks with Chinese banks for a $600 million loan, ARY News reported citing sources.

According to sources, the prime minister will engage in talks with Commercial Bank of China and Industrial and Commercial Bank of China, to secure a $600 million loan.

Sources said that previous negotiations with the banks had failed due to stringent conditions set by the Chinese banks.

Pakistan is seeking to relax the tough conditions set by the Chinese banks, including the payment schedule for Chinese IPPs and an interest rate of up to 8%, sources added.

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The government has been in talks with the Chinese banks since July 2023 to secure the loan. The loan is now being sought for the next fiscal year, and the negotiations aim to finalize the $600 million loan agreement with favorable terms for Pakistan.

It is pertinent to mention here that Prime Minister Shehbaz Sharif is in China and will spend a busy day in Beijing today.

The Prime Minister will address Pakistan-China Friendship and Business Reception. The Prime Minister will meet the heads of China International Development Agency, China Exim Bank, China Power, China Energy, China Road and Bridge Corporation, China Construction and Communication Corporation.