Energy Markets
Pakistan signs $4.5 Billion Loans with Local Banks to Reduce Power Sector Debt
Officials from the Pakistani government announced on Friday that 18 commercial banks had signed term sheets for an Islamic finance facility worth 1.275 trillion Pakistani Rupees ($4.50 billion), to help reduce debts in the power sector. The government, who owns or controls most of the infrastructure for power, is struggling with a ballooning "circular" debt, unpaid bills, and subsidies that have weighed down the sector and the economy. The liquidity crunch disrupted the supply, discouraged investments and increased fiscal pressure. It is therefore a major focus of Pakistan's IMF program worth $7 billion. Finding money to fill the gap is...