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

Finance Minister Muhammad Aurangzeb said in London that Pakistan intends to seek a larger China swap line when the current 30 billion yuan facility comes up for renewal in 2027, according to Business Recorder. He said the existing line has been fully drawn, and the government has not yet settled on the amount it will request. Aurangzeb also said he expects a US reply within two months on a proposed $10 billion exchange stabilisation facility.

Talks are also under way with the US Export-Import Bank and the US International Development Finance Corporation. Aurangzeb indicated that EXIM support could extend to Boeing aircraft orders by Pakistan International Airlines, which has now been privatised, while DFC could assist financing for the $5 billion plan to modernise oil refineries. He described the two sets of talks as complementary rather than conflicting, and said relations with both Beijing and Washington are strong at leadership level.

On energy, Aurangzeb said Pakistan holds enough oil stocks to cover needs through September and is well placed for October, with a mechanism reviewing supply daily. He warned that a prolonged Middle East conflict running into November or December would be a concern and could put the 4% growth target at risk. He added that the government has no plans to seek extra IMF financing, and an IMF mission arrives next week for the fourth review of the $7 billion programme.