Finance Minister Muhammad Aurangzeb will embark on a visit to China starting today, as Pakistan is seeking a rescheduling of $15bln loan from Beijing.

As per details, a joint working group will be established between Pakistan and China to facilitate the loan rescheduling, according to sources.

Additionally, discussions will address China’s energy circular debt, which currently amounts to Rs 480 billion.

The Finance Minister will also engage in talks regarding the Panda Bond. Pakistan aims to secure a $250 million Panda Bond during this visit.

Earlier this year, China rolled over a $2 billion loan to Pakistan.

The $2 billion loan was due in March and was extended for one year. Beijing had communicated the decision to Islamabad, it added.

Pakistan’s cash-strapped economy is struggling to stabilise from a financial crisis and secured a $3 billion standby arrangement from the International Monetary Fund last summer.

Pakistan’s vulnerable external position means that securing financing from multilateral and bilateral partners will be one of the most urgent issues facing the next government, ratings agency Fitch said last week.