Power: Government’s PKR 1.25 Trillion Loan Plan - By IIS Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">The government is negotiating a PKR 1.25 trn loan from commercial banks at an interest rate of KIBOR minus 1% to manage circular debt in the power sector. This initiative is designed to replace expensive existing debt and reduce penalties incurred due to delayed payments to IPPs and other entities. The plan has reportedly been shared with the IMF, and while discussions with banks are ongoing, an agreement is expected in the coming days. Some banks have raised concerns regarding the offered rate, as the government initially proposed a fixed interest rate of 7-8%, which was not finalized.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">The government is negotiating a PKR 1.25 trn loan from commercia...