Pakistan eyes bigger China swap line, expects US financing decision soon

• US response on $10bn stabilisation facility in two months: FinMin.
• Says China has been long-standing strategic partner for Pakistan. 
• Aurangzeb says Pakistan moving away from aid towards trade. 
  

LONDON: Pakistan will seek an expansion of its 30 billion yuan swap line with China when the facility expires in 2027, Finance Minister Muhammad Aurangzeb said, adding he expects a US response on a proposed $10 billion exchange stabilisation facility within two months.

Aurangzeb said the entire ¥30bn swap line from China had been fully drawn, adding that the government had yet to decide how much additional financing it would seek when the facility comes up for renewal.

"They were open to it, but there is a process which has to be followed," said the finance czar, referring to recent meetings with his Chinese counterpart and the country's central bank governor. "We do ⁠plan to make a formal request at the time of the renewal."

Meanwhile, Aurangzeb said he expected a response within two months to Pakistan's request for a $10 billion exchange stabilisation facility from Washington, adding that the government was also in talks with the Export-Import Bank of the United States (EXIM) and the US International Development Finance Corporation (DFC).

EXIM financing could support aircraft purchases from Boeing by Pakistan International Airlines now that the national carrier is privatised, while DFC could help fund a planned $5 billion programme to upgrade the country's oil refineries.

Asked whether there were any concerns about simultaneously seeking additional support from the United States and China, Aurangzeb said it was an "and-and" discussion.

"China has been a long-standing strategic partner for us... and we have very good at the leadership level now understanding and relationship with the Trump administration," he said. "We are ‌very fortunate ⁠to have this kind of relationship with both important economic and superpowers."

The US Treasury, DFC and EXIM did not immediately reply to a request for comment.

Asked about elevated crude oil prices following the latest Middle East conflict, which began in February, Aurangzeb said Pakistan had navigated the initial price spike after US and Israeli strikes on Iran relatively well, but cautioned that the outlook had become more uncertain.

"If this conflict goes into, unfortunately, November or ⁠December, you know, this is something which will be an area of concern for us," he said, adding prolonged disruption could put at risk the government's 4% growth target for the fiscal year.

Pakistan had secured sufficient oil stocks to cover its needs through September and was well positioned for October, he ⁠said, adding an institutionalised mechanism was now reviewing the situation on a daily basis. Planning for November supplies was already under way.

Nonetheless, Aurangzeb said the government had no plans to seek additional IMF financing or emergency support from the Washington-based lender.

"As of now, our considered ⁠view is that it's manageable."

An IMF mission is due next week for the fourth review of Pakistan's $7 billion programme and the third review of its Resilience and Sustainability Facility.

"From our perspective, we are in good stead with the quantitative benchmarks, and we are largely compliant with the structural benchmarks," he said.

‘Pakistan moving towards trade, investment’

Separately, the finance minister said that Pakistan is moving away from aid towards trade and investment, with greater emphasis on deepening commercial relationships with bilateral partners, attracting private capital and expanding Pakistan’s integration with regional and global markets.

Addressing the 9th Edition of the Leaders in Islamabad Business Summit 2026, themed “The Next Move,” through a video link today, the finance minister highlighted Pakistan’s recent return to international capital markets through the issuance of three billion dollars in international bonds after a four-year gap.

He said investor orders were nearly twice the amount sought, with particularly strong participation from Asian investors, Radio Pakistan reported. 

The finance minister noted that the quality and diversity of the investor base were as important as the size of the order book, with growing Asian participation providing an important signal of international investor confidence in Pakistan.

Aurangzeb noted that Pakistan’s GDP grew by around 3.7% during the last fiscal year, while economic activity has remained positive in the current fiscal year.

He also noted that the State Bank of Pakistan has projected GDP growth in the range of 3.5 to 4.5% for the current fiscal year.

Looking ahead, he emphasised the importance of positioning Pakistan for the new economy, including emerging opportunities around digitalisation, blockchain and Web 3.0. He said Pakistan must combine its young and increasingly technology-enabled talent base with an enabling policy and investment environment to participate in higher-value segments of the global economy.

The finance minister emphasised that bringing permanence to macroeconomic stability remains central to Pakistan’s economic future, with strong fiscal and external buffers necessary to manage domestic and external pressures.

He said the government remains focused on protecting the gains achieved while continuing the structural reforms necessary to strengthen productivity, competitiveness and private-sector-led growth.