Finance Minister Muhammad Aurangzeb will embark on a visit to China on Tuesday.
Sources close to the development said that the finance minister’s visit aims at Pakistan’s efforts to reschedule a $15 billion loan from Beijing. A joint working group is expected to be set up between Pakistan and China to facilitate the loan rescheduling.
Discussions will also address China’s energy circular debt, currently amounting to Rs480 billion. The Finance Minister will engage in talks regarding the Panda Bond, with Pakistan aiming to secure a $250 million Panda Bond during this visit.
Earlier this year, China rolled over a $2 billion loan to Pakistan, which was due in March and extended for one year.
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Pakistan is making attempts to stabilize from a financial crisis, having secured a $3 billion standby arrangement from the International Monetary Fund last summer.
Rating agency Fitch recently noted that Pakistan’s vulnerable external position means securing financing from multilateral and bilateral partners will be among the most urgent issues facing the next government.