Pakistan’s Finance Minister, Muhammad Aurangzeb, is set to discuss the rescheduling of Chinese debt during the upcoming International Monetary Fund (IMF) Spring Meetings in Washington. He plans to engage with his Chinese counterpart to address the issue of rescheduling guaranteed debt .
This initiative is part of Pakistan’s broader efforts to manage its external financing obligations and to implement structural reforms recommended by the IMF. Previously, Pakistan has sought to reprofile approximately $15 billion in energy sector debt owed to China, aiming to extend repayment periods and reduce the immediate financial burden .
The discussions also align with Pakistan’s recent $7 billion loan agreement with the IMF, which emphasizes fiscal consolidation and structural reforms . Engaging with China on debt rescheduling is a critical component of Pakistan’s strategy to stabilize its economy and ensure sustainable debt management.
