China agrees to reschedule $2 billion debt | The Express Tribune
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ISLAMABAD: China has agreed to reschedule over $2 billion publicly guaranteed debt of Pakistan for a period of two years, providing a major relief to the government that is in the process of rebuilding foreign exchange reserves through fresh loans and rolling over maturing debt. The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved the revised terms of the agreement reached between Islamabad and Beijing, according to senior Pakistani officials. Finance Minister Ishaq Dar chaired the meeting. Pakistan has built two nuclear power plants in Karachi that have a combined generation capacity of 2,117 megawatts. The total cost of the plants is $9.5 billion, including the $6.5 billion financing from China. The loan was extended by the Export-Import (Exim) Bank of China. Of $2 billion, over $625 million was maturing in this fiscal year that will now be paused. The $6.5 billion is a publicly guaranteed debt and over $2 billion repayments were maturing i