Payments to Chinese private power generators have become a major problem for Pakistan.
The Chinese banks say that the new loan cannot be discussed until the payment schedule to the Chinese IPPs is fixed, while the IMF has also sought assurances that Pakistan will provide the Chinese IPPs with the new loan program. Will not make payments.
According to information obtained by a private channel, the IMF has asked Pakistan to settle payment arrangements with Chinese IPPs and guarantee that its new program does not involve payments to Chinese IPPs. and they should be rescheduled for 5 years.
On the other hand, the Chinese IPPs are not ready to negotiate until the dues are paid, the Pakistani government has not been able to convince the Chinese companies to reduce the power tariff.
The prime minister and the finance minister are negotiating to relax the strict conditions for the $600 million loan from Commercial Bank of China and Industrial and Commercial Bank, while both Chinese banks are demanding an interest rate of up to 8 percent.
Negotiations for the loan are ongoing from July 2023, the two Chinese banks have also demanded a schedule for making payments to the Chinese IPPs for the new loan. It should be noted that at that time, Pakistan has given the Chinese power plants about 550 billion rupees. have to pay
