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

Pakistan plans to ask China for a bigger 30 billion yuan swap facility at renewal in 2027, Finance Minister Muhammad Aurangzeb said. The full line has been drawn, and no decision has been made on how much extra funding to request. A formal request will come at renewal, as Chinese officials were receptive in recent meetings but a process must be followed.

Aurangzeb expects Washington to respond within two months to the proposed $10 billion stabilisation facility. Talks are also under way with the Export-Import Bank of the United States and the US International Development Finance Corporation. That bank could support Boeing aircraft purchases by Pakistan International Airlines, now privatised, while the other agency could help fund a $5 billion refinery upgrade. The US Treasury and the agencies did not immediately respond to requests for comment.

Aurangzeb also discussed the Middle East conflict that began in February and its effect on crude prices. He said the government handled the initial price spike relatively well but sees the outlook as more uncertain. A drawn-out disruption into November or December would threaten the 4% growth goal for this fiscal period. Oil stocks cover needs through September and October is well placed, while no extra IMF or emergency support is planned.