Pakistan has approached China with an informal request to ease terms on the repayment of debt on about a dozen power plants set up under the China-Pakistan Economic Corridor over the past eight years, Bloomberg reported.

“The parties have canvassed Beijing’s willingness to stagger debt payments, as opposed to lowering equity returns,” the report said, adding that Pakistan has yet to make a formal offer. The report claimed that “Pakistan will formally make the request…after it concludes deals with those local power producers to reduce electricity tariffs”.

A spokesperson at China’s Ministry of Foreign Affairs said they aren’t aware of Pakistan’s plan to seek debt relief.

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“Energy projects have provided Pakistan with a large amount of stable and low-priced electricity, effectively reducing the overall price of electricity in Pakistan,” the spokesperson told Bloomberg. “China-Pakistan energy cooperation has progressed smoothly and brought about real economic and social benefits,” it quoted the official as saying.

Pakistan’s power division didn’t respond to the US-based business media outlet for comments.

According to Bloomberg, an enormous build-out of Chinese-financed power plants in Pakistan, which was originally intended to solve its electricity shortages, has resulted in a surplus that Islamabad isn’t able to afford.

While Chinese financing has helped Pakistan diversify fuel supplies, it has also resulted in a surplus of electricity, which is problematic for the government in Islamabad because it is the sole buyer and pays producers even when they don’t generate. To help tackle the issue, the government has negotiated with power plants, which produce roughly half of its electricity, to lower rates.

After these negotiations, the government will approach the Chinese government for debt relief, it added.