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flag Pakistan seeks massive loan to address $14.7B power sector debt, may raise electricity tariffs.

flag Pakistan's government is negotiating a Rs1.24 trillion ($6.5 billion) loan with banks to tackle a Rs2.38 trillion ($14.7 billion) circular debt in the power sector. flag The loan would be repaid through a debt servicing surcharge on electricity tariffs. flag If successful, this could ease pressure on the power sector and pave the way for private investment and the privatization of distribution companies.

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