Islamabad [Pakistan], May 30 (ANI): Bankruptcy Pakistan’s debt problem appears to be escalating due to the weather. China has declined a US $ 3 billion debt restructuring.

Islamabad has urged the Chinese government to forgive the debt of China-funded energy projects established under the China-Pakistan Economic Corridor (CPEC).

The main debt burden of building independent power producers (IPPs) under take-or-pay power contracts is well above the total US $ 19 billion invested in power plants, the Asia Times reports. Said, citing an industry analyst.

According to media reports, China has refused to succumb to demands for renegotiation of Islamabad’s power purchase agreements, saying Chinese banks will need to revise credit terms to relieve debt. ing.

Banks such as the China Development Bank and the China Export-Import Bank were not ready to amend the provisions previously agreed with the government, Beijing said in response to a request for renegotiation of terms.

Pakistan Tehreek-Eye Movement (PTI) Senator and businessman Naumann Wazir told the Asia Times, “First, the State Power Corporation of China (NEPRA) has decided very much to allow electricity in the private sector. It was high. “The IPP then filed false statements about the company’s capital, financial assets and operating costs, which became apparent when the IPP’s balance sheet was published,” he said. Citing the evidence revealed, Pakistan’s electricity sector revealed its findings last year.

As of December 30, 2020, Pakistan is in the “dangerous zone” of sovereign debt, which is the sum of US $ 294 billion in debt and debt, which is 109% of GDP.

The Pakistani government reportedly owes about US $ 158.9 billion to domestic creditors, of which public sector companies ow about US $ 15.1 billion. According to News International, US $ 3.11 billion in foreign commercial loans and US $ 1 billion from Chinese deposits contributed to the government’s achievement. Net transfer of dollar inflows for the current fiscal year.

Combined with foreign commercial loans and safe deposits, Pakistan received more than US $ 4.1 billion, or more than 50% of the total foreign dollar inflows received from creditors.

The Imran Khan government received a total of US $ 7.28 billion inflows from multiple sources between July and February of the 2020-21 fiscal year, according to official data from the Ministry of Economic Affairs (EAD). I reported that. Percentage of US $ 12,233 million in annual budget estimates for the entire 2020-21 fiscal year.

The News International reported further. Spending from multilateral and bilateral development partners also remains strong, with a longer maturity concessional term for the US $ 5,811 million budget allocation for fiscal 2020-21. Budget allocation for fiscal year 21 was $ 3,098 million during the review period. These healthy inflows also helped improve foreign exchange reserves and exchange rate stability.

Pakistan’s outlets have increased the level of external inflows from multilateral and bilateral development partners to government development priorities and policies, including implementing reforms in fiscal and debt management, energy sector priorities. The official report claims that it is a sign of their confidence. And the ease of doing business. (Ani)