Islamabad: Pakistan has caved into China's demand for opening a revolving bank account that would partially save Chinese power plants from circular debt but it may cause concern among officials of the International Monetary Fund.
The decision was taken by the Economic Coordination Committee of the cabinet on Monday. Finance Minister Ishaq Dar chaired the ECC meeting, reported The Express Tribune. "The ECC approved a proposal of the finance ministry to change the title of the revolving fund account for CPEC independent power producers (IPPs) from Pakistan Energy Revolving Fund to Pakistan Energy Revolving Account," according to a statement by the Ministry of Finance. The finance ministry informed the ECC that the title of the fund had been reviewed to bring it in conformity with the original CPEC agreement dated November 8, 2014.