Chinese companies have rejected Pakistan’s request to renegotiate the Power Purchase Agreements (PPAs) for China-Pakistan Economic Corridor (CPEC) energy projects and nuclear power plants. This comes as Pakistan seeks debt relief and reduction in interest rates.

Key Points:

Chinese Companies’ Stance: Representatives of three large Chinese companies stated that the matter of debt restructuring should be decided between Chinese banks and Pakistani authorities, but ruled out renegotiating their own terms and conditions.

Pakistan’s Proposal: Pakistan has prepared a proposal for up to 8 years extension in energy debt repayments, changing lending currency from US dollar to Chinese Yuan, and seeking a cut in interest rates.

Impact on Energy Prices: If accepted, the concessions could lead to a Rs6-7 per unit reduction in energy prices.

Background: Pakistan has taken debt from Chinese financial institutions for setting up power plants and nuclear power plants, with an estimated outstanding debt of around $17 billion.

#CPEC #PowerContracts #DebtRelief #ChinaPakistanEconomicCorridor #EnergyPrices #PakistanEconomy