Pak govt claims progress in China debt talks

ISLAMABAD, Aug 11 (Express Tribune): Pakistan government has been able to achieve "positive development" in negotiations with China on debt re-profiling and conversion of power plants into local coal to pave the way for tariff reduction.

Earlier, Prime Minister Shehbaz Sharif wrote a letter to the Chinese government, in which he requested for debt re-profiling and giving the country a breathing space in meeting debt obligations. "We are separately talking with China for debt re-profiling and switching over power plants to local coal," a source said, adding that there had been positive development in that regard.

Sources revealed that the government was working on a two-pronged strategy. On the one hand, the prime minister has formed a task force, which is holding meetings on a daily basis to develop a strategy for reducing the tariff of independent power producers (IPPs).

On the other hand, the government is locked in talks with the Chinese leadership to ensure debt re-profiling and run power plants on coal. The task force has got powers to engage international experts and review IPP agreements in an attempt to slash capacity payments. Agreements with the IPPs would be assessed with mutual consultation, sources said.

National Task Force Chairman and Minister for Power Division Sardar Awais Ahmad Khan Leghari is spearheading power sector reforms and making all-out efforts to arrive at an acceptable solution.