(Web Desk) – Minister for Power Awais Leghari said there was a need to revise the contracts with Chinese independent power producers regarding coal sourcing and power debt reprofiling need to be reviewed.
Pakistan has asked China to switch the coal-fired power projects to local fuel and reschedule the $15 billion debt owed by Pakistan to Chinese IPPs. The steps aim at creating financial breathing room of Pakistan can secure much-needed bailout package of around $7 billion from the International Monetary Fund (IMF).
Last month, the power minister had visited Beijing to discuss the conversion of the Chinese IPP to local fuel. He had said it would not only benefit the Chinese power producers but also help Pakistan saving much-need forex reserves.
In an interview with Voice of America, Legari said: “I think the terms and conditions that we already have with the Chinese as far as their IPPs [independent power producers] are concerned, they need another look”.
He highlighted that China, like the IMF, wants Pakistan to introduce broader reforms.
China and the IMF “are wanting to look at the entire economic or power sector reform that we have already authored and embarked upon,” Leghari was quoted as having said.
“I think the more the confidence they have in our economic reform agenda, the better would be the response.”