Overview

• A consortium of 18 banks signed the financing with the government in Islamabad, with Prime Minister Shehbaz Sharif joining the ceremony virtually from New York.
• The latest statements place the facility at Rs1.225 trillion, though earlier reports cited Rs1.275 trillion for the planned package.
• The six-year facility is amortized in 24 quarterly installments and is priced at three‑month KIBOR minus 0.9%, with an annual repayment envelope reported at about Rs323 billion.
• Proceeds will refinance legacy Power Holding Limited borrowings and clear arrears to independent power producers, combining roughly Rs659.6 billion in restructured bank loans with about Rs565.4 billion in fresh financing.
• Officials and banking sources say the loan is extended to CPPA without a sovereign guarantee, with debt service funded from consumer bills and tied to IMF-backed energy sector reforms.