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.
Pakistan remains reliant on external financing to bolster foreign exchange reserves and meet debt repayments, making support from China, Gulf states and multilateral lenders key to maintaining economic stability and investor confidence.
According to Reuters, Mr Aurangzeb said the entire 30 billion yuan 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.
Finance minister says existing swap facility has been fully drawn; Islamabad expects Washington’s response within two months
“They were open to it, but there is a process which has to be followed,” said Mr Aurangzeb, 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.”
Exchange stabilisation facility
Mr Aurangzeb said he expected a response within two months to Pakistan’s request for a $10bn 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 $5bn programme to upgrade the country’s oil refineries.
Asked whether there were any concerns about simultaneously seeking additional support from the US and China, Mr 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, Mr 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 4pc 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 that an institutionalised mechanism was now reviewing the situation daily. Planning for November supplies was already under way.
Nonetheless, Mr 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 $7bn 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.
‘Economy now in better position’
Meanwhile, Finance Minister Aurangzeb said that Pakistan’s economy was now in a better position, with the improvement continuing into the current fiscal year.
The minister addressed the 9th edition of the Leaders in Islamabad Business Summit 2026, themed “The Next Move”, via video link and outlined the government’s priorities for economic stability, sustainable growth and investment.
Mr Aurangzeb noted that Pakistan’s GDP grew by around 3.7pc during FY26, while economic activity had remained positive in the current fiscal year. He said the State Bank had projected GDP growth in the range of 3.5pc to 4.5pc for the current fiscal year.
Elaborating on key economic indicators, he said LSM had improved, while strong remittance inflows and continued expansion in IT exports supported the external account.
The minister said the government remained focused on protecting the gains achieved while continuing structural reforms necessary to strengthen productivity, competitiveness and private-sector-led growth.
He said Pakistan was also deliberately moving away from aid towards trade and investment, with greater emphasis on deepening commercial relationships with bilateral partners.
Mubarak Zeb Khan in Islamabad also contributed to this report
Published in Dawn, September 18th, 2026
