Energy projects encounter financing hurdle

China is reluctant to extend financing to Pakistan for energy projects due to concerns over the country's economic record, security situation and repayment issues. Sources told The Express Tribune that Pakistani energy companies were seeking financing from China for various energy ventures. However, Sinosure – a state-owned Chinese company that provides insurance cover for loans and debt financing – is reportedly hesitant to offer insurance facility for bank lending to Pakistan's energy projects. The China Export & Credit Insurance Corporation (Sinosure) is a state-owned policy insurer that plays a crucial role in facilitating Chinese overseas investments. For any Chinese bank extending loans to overseas projects, including those in Pakistan, Sinosure must first issue risk insurance. Without this, Chinese banks refrain from releasing funds.