Pakistan, China discuss energy sector reforms

High-level officials from Pakistan including Finance Minister Muhammad Aurangzeb and Minister for Power Sardar Awais Ahmad Khan Leghari held discussions with the Chinese authorities on the country’s energy sector.

As per a statement released by the Finance Division, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with China’s Charge D’affaires Shi Yuanqiang and other officials of the Embassy of People’s Republic of China on Thursday.

Minister for Power Sardar Awais Ahmad Khan Leghari, Special Assistant to Prime Minister on Power Muhammad Ali, and Minister of State for Finance & Revenue Ali Pervaiz Malik also attended the meeting.

As per the statement, Aurangzeb welcomed the Chinese delegation and underscored the strong bilateral relationship between the two nations.

Aurangzeb says Pakistan has secured debt rollover commitments from China, Saudi Arabia and UAE

“He highlighted recent positive developments in Pakistan’s economic landscape, including increased foreign exchange reserves, decreased inflation, and enhanced tax collection,” read the statement.

During the meeting, the minister also outlined significant government reforms in the energy sector, state-owned enterprises (SOEs), and ongoing privatisation efforts.

“Emphasising a focus on export-led growth, he expressed Pakistan’s commitment to attracting increased foreign direct investment (FDI),” he said.

The countries, which share a border, have been longtime allies, and rollovers or disbursements on loans from China have helped Pakistan meet its external financing needs in the past.

During the meeting, Aurangzeb recalled his recent visit to China and expressed that he had “extremely useful discussions with the Minister for Finance and other officials on proposals for enhancing economic cooperation between the two countries.”

Meanwhile, Minister of Power Sardar Awais Ahmad Khan Leghari said Islamabad “greatly appreciates the Chinese investment in the energy sector of Pakistan”.

Leghari said the government was implementing a number of reforms to address the issues in the energy sector, read the statement.

Chargé d’affaires reiterated the Chinese government’s commitment to support Pakistan’s sustainable economic development.

“He said the Embassy was working with various departments on both sides to coordinate implementation of the understandings reached during Prime Minister’s visit to China,” read the statement.

Last month, Aurangzeb told a press conference that Pakistan had initiated talks on reprofiling its power sector debt to China.

He said that Pakistan will address the reprofiling of Chinese credit to the power sector on a project-by-project basis and that Islamabad is looking to appoint a local advisor in China for the purpose.