Prime Minister Shehbaz Sharif said on Friday that he has written a letter to the Chinese government seeking debt reprofiling for Pakistan as the country takes steps to secure the International Monetary Fund bailout package.
“I have written a letter to China, it’s a matter of public domain now, for [debt] reprofiling,” he told the federal cabinet before the National Assembly session.
In his first press conference after visiting China, Finance Minister Muhammad Aurangzeb told reporters that the country has sought the reprofiling of more than $27 billion in debt and liabilities with friendly nations — China, Saudi Arabia, and the UAE — to secure $7 billion loan programme from the Fund.
Debt reprofiling refers to “modifications of the aggregate schedule of future country repayments through refinancing, debt substitution, or renegotiations,” according to the World Bank.
PM Shehbaz added that Chinese President Xi Jinping had shown “keen interest in his idea” of using local coal to cut down imports.
“I told the president that Thar coal could help the country cut down on imports and save $1 billion in foreign exchange,” the PM said.
While speaking about the power crisis, he said the government was focused on providing relief to electricity consumers.
Those protesting were engaging in “politics for the sake of politics,” he said.
The premier also condemned the assassination of Hamas leader Ismail Haniyeh in Tehran, calling it a “brutal act of savagery.” He expressed Pakistan’s condemnation of the act, noting that the Foreign Office had issued a statement and Deputy Prime Minister Ishaq Dar had released a formal condemnation.
PM Shehbaz also announced that a special prayer for Haniyeh would be held after Friday prayers. He expressed his “deep concern” over the ongoing devastation in Palestine and called for the world to wake up to the situation.
He claimed that the government was working tirelessly to resolve the power crisis, citing the construction of four state-of-the-art LNG power plants with a capacity of 5,000 megawatts. These plants were built at a significantly lower cost than previous projects, making them the cheapest in history, the premier claimed.
He attributed the lack of private sector investment in the power sector to the low tariffs, arguing that the government had to step in to address the issue. He urged against criticising past agreements, stating that the government was focused on solving the problem, not playing politics.
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PM Shehbaz reiterated the government’s commitment to reducing electricity prices, calling it the agenda of both himself and Nawaz Sharif. He urged for an end to politicizing the issue, stating that it was an insult to the public and a national demand.
He criticised the Khyber Pakhtunkhwa government, questioning their achievements during their 10-year tenure. He challenged them to explain their progress in building dams, despite their promises to construct 300. He also questioned their investment in hydropower projects.
He praised the efforts made during the caretaker government to curb electricity theft, acknowledging the role of the army chief in the initiative.
While highlighting the importance of Pakistan’s ties with China, the premier commended the country’s support in the energy sector, crediting the previous PML-N government for signing the agreements that led to the China-Pakistan Economic Corridor project.
Moreover, the premier informed a high-level Chinese delegation that the federal cabinet had decided to exempt Chinese citizens from visa fees with effect from August 14.
He also mentioned that joint ventures between the two countries in the fields of mines and minerals, information technology, export zones, industrial zones, and the relocation of industry from China would further strengthen the local economy.
