Pakistan seeks larger China swap line, awaits U.S. response on $10 billion facility

  • Pakistan plans to request a larger China swap line when the facility expires in 2027.
  • 30 billion yuan has been fully drawn, while Washington is considering a separate $10 billion facility.
  • IMF officials are due next week to review Pakistan’s $7 billion program and sustainability facility.

Pakistan plans to formally request an expansion of its 30 billion yuan currency swap line with China when it expires in 2027, after drawing the facility in full. Finance Minister Muhammad Aurangzeb said the government expects a response within two months to its request for a $10 billion exchange stabilisation facility from Washington. Pakistan is also discussing financing with EXIM (U.S. export credit agency) and the DFC (U.S. development finance institution) for Boeing aircraft purchases by Pakistan International Airlines and a planned $5 billion refinery-upgrade program. Aurangzeb described support from China and the United States as complementary. He said Pakistan had sufficient oil stocks through September and was well positioned for October, but warned a prolonged Middle East conflict could threaten the government’s 4% fiscal-year growth target. The government does not currently plan to seek additional IMF financing or emergency support. An IMF mission is due next week to review Pakistan’s $7 billion program and its Resilience and Sustainability Facility.

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