Pakistan's Finance Minister Engages with China on IMF-Suggested Energy Sector Reforms

Pakistan's Finance Minister, Muhammad Aurangzeb, arrived in Beijing to discuss structural reforms in the power sector with Chinese officials, as suggested by the IMF. The talks aim to address Pakistan's energy sector debt and improve efficiency amid a $7 billion bailout agreement with the IMF.

Pakistan's Finance Minister Muhammad Aurangzeb arrived in Beijing on Thursday to initiate discussions on structural reforms in the power sector proposed by the International Monetary Fund (IMF), according to two government sources.

He met with his Chinese counterpart, and together with Power Minister Awais Leghari, is leading a delegation focused on several proposals, including the reprofiling of nearly $15 billion in energy sector debt. Longtime allies, Pakistan and China continue to collaborate on financial matters.

Loans from China have previously enabled Pakistan to meet its external financial requirements. Both finance and power ministers indicated that power sector reforms would be on the agenda during their Beijing visit, despite not specifying the exact timing. China has committed over $20 billion to energy projects in Pakistan.

(With inputs from agencies.)