Chinese debt repayment will be possible only after the second phase of CPEC starts, Finance Minister – Business & Economy

Finance Minister Muhammad Aurangzeb says that positive discussions are going on with the financial institutions including the IMF, Pakistan is on the reform agenda for economic stability. It will be possible to pay the Chinese debts only after the second phase of CPEC starts.

In an interview to Chinese TV, the Finance Minister said that under the second phase of CPEC, Special Economic Zones are to be established in Pakistan and through this, China’s debts will be repaid, it was supposed to be like this.

He said that we are grateful to China for rolling over the loans.

The finance minister said that the focus is on increasing the tax net, taking steps to reduce expenditure and reduce the rate of inflation, working on various projects in collaboration with various international organizations.

He said that Pakistan was the most affected by climate change, China has always played an active role in the development of Pakistan, CPEC is a wonderful and exemplary project by China.

Federal Finance Minister Muhammad Aurangzeb met the Chinese counterpart in Washington. He expressed condolences on behalf of the Pakistani leadership and people for the terrorist attack against Chinese citizens in Pakistan and reiterated his determination to make all kinds of arrangements to protect Chinese citizens.

In the meeting, Finance Minister Muhammad Aurangzeb appreciated China’s invaluable contribution to Pakistan’s development as an all-weather friend through initiatives such as the China Pakistan Economic Corridor (CPEC) and cooperation in international financial institutions. He expressed the determination of the Government of Pakistan to speed up the process.

He also thanked Chinese counterpart Lan Fuan’s safe deposits and the Chinese government for bridging the external financing gap and said that Pakistan is entering into a comprehensive and expanded program with the IMF and China’s support. Looking forward to

The Federal Finance Minister said that Pakistan wants to launch Chinese panda bonds during the financial year 2025 and 2026.

In the meeting, the two leaders agreed on the need to continue cooperation in international institutions.

Earlier, the finance minister had told the British news agency that Pakistan will start talks with the IMF on the new program in May. The IMF delegation will reach Pakistan in the middle of May.