Pakistan Minister Discusses Power Sector Reforms in Beijing

Pakistan's Finance Minister Muhammad Aurangzeb arrived in Beijing to discuss power sector reforms and debt relief, in light of a recent $7 billion IMF bailout. He is accompanied by Power Minister Awais Leghari, and they are proposing to reprofile nearly $15 billion in energy sector debt. The IMF has raised concerns over high power theft and distribution losses contributing to a mounting debt crisis in Pakistan's energy sector. The government aims to reduce 'circular debt' by 100 billion Pakistani rupees ($360 million) annually due to subsidies and unpaid bills. Previous IMF measures, including increased power tariffs, have adversely affected poor and middle-class households. China, a longtime ally of Pakistan, has invested over $20 billion in energy projects within the country, which is crucial for its economic stability.