Pakistan, April 5 -- Minister for Power Sardar Awais Khan Leghari announced that negotiations are nearly complete for loans amounting to Rs1.34 trillion. These funds aim to address the power sector's circular debt, which currently totals Rs2.4 trillion. Leghari stated that once banks submit their term sheets, the agreements will be finalized. This deal is expected to reduce the circular debt by Rs300-335 billion.

The minister explained that the loans will be repaid through a debt servicing surcharge of Rs3.23 per unit. Both current and future governments will continue to make repayments using this system. Furthermore, Leghari highlighted ongoing discussions with China regarding debt reprofiling and the conversion to local coal. He reassu...