Pakistan, March 8 -- Pakistan's government is negotiating a 1.25 trillion rupee ($4.47 billion) loan with commercial banks to tackle its mounting energy sector debt. Power Minister Awais Leghari confirmed that the loan, a key part of the IMF-backed economic reforms, will be repaid over 5 to 7 years. The initiative aims to stabilize the power sector and improve financial efficiency.

To address the "circular debt" crisis, Pakistan has already increased energy prices as advised by the IMF. The government now plans to replace state-backed debt with a revenue-based system, lowering financing costs and easing the burden on public finances. Officials believe this will create a more sustainable energy sector.

The Pakistan Banks Association chai...