Pakistan awaits US verdict on $10bn facility

According to Mettis Global, Finance Minister Muhammad Aurangzeb said Pakistan intends to request a bigger currency swap line from China once its present 30-billion-yuan arrangement is renewed in 2027. He told Reuters the existing yuan line has been fully drawn, though no decision has been taken on the extra amount to request. Chinese officials were receptive in recent talks, but any increase still needs Beijing's internal sign-off. The swap line has quietly buffered foreign exchange reserves, and a larger one could let the State Bank absorb outside pressures without relying as heavily on pricier market borrowing.

Washington's answer on Pakistan's $10 billion exchange stabilisation request is expected within two months, the minister said. Separate talks cover the US Export-Import Bank, which may help finance Boeing jets for the privatised Pakistan International Airlines, and the US International Development Finance Corporation, which might back a $5 billion refinery upgrade. He framed the two tracks as complementary rather than rival efforts. He also ruled out fresh IMF money or emergency assistance, calling the position manageable.

Oil supplies are secured through September, and October looks well positioned, with a daily review now under way. He warned that a conflict stretching into November or December could become a serious worry. An IMF team reaches Pakistan next week to begin the fourth review under the $7 billion Extended Fund Facility.