KARACHI: The government is negotiating a Rs1.25 trillion ($4.47 billion) loan with commercial banks to reduce its bulging energy sector debt, the power minister and banking association said.

Plugging unresolved debt across the sector is a top priority under an ongoing $7bn International Monetary Fund (IMF) bailout, which has helped Pakistan dig its way out of an economic crisis.

“The loan will be repaid over a period of 5 to 7 years,” Power Minister Awais Leghari told Reuters, adding that the term sheets are yet to be signed.

The government, the........

© Dawn Business