Pakistan plans to seek an increase in its 30 billion yuan currency swap arrangement with China when the facility expires in 2027, while the government expects a response within two months on its request for a $10 billion exchange stabilization facility from the United States, Finance Minister Muhammad Aurangzeb said.
Aurangzeb said Pakistan had fully utilized its existing 30 billion yuan swap line with China. The government has not yet determined the size of any increase it will seek but plans to make a formal request when the facility is renewed.
He said China had indicated that it was open to considering the request, although the formal process would need to be completed before any decision.
Separately, Aurangzeb said Pakistan expects a response within two months to its request for a $10 billion exchange stabilization facility from the US.
Pakistan is also holding discussions with the US Export Import Bank (EXIM) and the US International Development Finance Corporation (DFC).
EXIM financing could support Pakistan International Airlines’ purchase of Boeing aircraft following the airline’s privatization. DFC financing could contribute to a planned $5 billion program to upgrade Pakistan’s oil refineries.
Asked about seeking financial support from both countries, Aurangzeb described the approach as “and and,” rather than choosing between China and the US.
He said China remained a long-standing strategic partner, while Pakistan also maintained a strong relationship with the Trump administration.
Oil Supply and Economic Growth
Aurangzeb said Pakistan had handled the initial increase in crude oil prices following US and Israeli strikes on Iran relatively well, but said the outlook had become more uncertain.
Pakistan has secured enough oil stocks to meet domestic requirements through September and is in a strong position for October, according to the minister. Planning for November supplies is already underway, while an institutional mechanism is monitoring the situation daily.
He warned that a prolonged conflict in the Middle East extending into November or December could create economic concerns and put the government’s 4 percent growth target for the fiscal year at risk.
Despite Pakistan’s external financing requirements, Aurangzeb said the government does not plan to seek additional financing or emergency support from the International Monetary Fund (IMF), maintaining that the situation remains manageable.
An IMF mission is scheduled to arrive next week for the fourth review of Pakistan’s $7 billion program and the third review under its Resilience and Sustainability Facility.
Aurangzeb said Pakistan was in good standing on its quantitative targets and had largely met its structural benchmarks.
