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Pakistan economic crisis intensifies as China refuses to provide debt reliefInternational 2021-05-31, by Editor Comments Off 0
ISLAMABAD: Bankrupt Pakistan’s debt problems seem to be escalating as it is all weather-ally China has declined to restructure $3 billion in liabilities.
Islamabad has requested Beijing to forgive debt liabilities owed to China-funded energy projects established under the China-Pakistan Economic Corridor (CPEC).
The debt load, owed largely for the building of independent power producers (IPPs) on take-or-pay power generation contracts, is substantially more than the $19 billion in total invested in the plants, Asia Times reported citing reports and industry analysts.
SA’s coal exporters face a shrinking market
As Thungela Resources’ CEO attempts to talk up the future of the Anglo American coal spin-off, SA’s second-largest coal export destination is planning to bring coal imports to an end.
Thungela CEO July Ndlovu recently stated that a “just transition” for developing nations requires the continued operation of existing coal-fired power plants to avoid economic damage. However, even in the unlikely event that coal power stations can remain financially sustainable amid the ongoing wave of ever-cheaper renewable energy development globally, Ndlovu misses a key point.
In some of SA’s key export destinations any continued long-term operation of coal-fired power plants doesn’t necessarily support imported coal. It makes sense from an economic and energy security point of view for them to replace imports with domestic coal.