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

According to Dawn, Finance Minister Muhammad Aurangzeb said Pakistan will seek to enlarge its 30 billion yuan swap arrangement with China when it ends in 2027. The entire line has already been drawn, and the government has not yet settled on the amount of extra financing it will request at renewal. He said a formal request is planned for that time, after the Chinese side signalled openness during recent meetings.

Aurangzeb expects Washington to reply within two months to Pakistan's $10bn request for an exchange stabilisation facility. He also said talks are under way with the US Export-Import Bank and the US International Development Finance Corporation. Pakistan International Airlines, now privatised, could use Export-Import Bank financing for Boeing aircraft, while the DFC could help fund a planned $5bn oil refinery upgrade.

Aurangzeb said Pakistan has enough oil stocks for its needs through September and is well placed for October, with a daily review mechanism and November planning already under way. He warned that a prolonged Middle East conflict extending into November or December would be a concern and could put the 4pc growth target at risk. He added that the government has no plans to seek extra IMF or emergency support, describing the situation as manageable. The IMF team arrives next week to assess the fourth review of the $7bn arrangement.