ISLAMABAD: Pakistan plans to seek an expansion of its currency swap arrangement with China in 2027.
Finance Minister Muhammad Aurangzeb said the existing facility is worth 30 billion yuan.
The facility is scheduled for renewal when it expires in 2027.
Aurangzeb said Pakistan has already fully used the existing swap line.
However, the government has not decided how much additional financing it will request.
He said Pakistan plans to formally seek more support when the facility comes up for renewal.
Chinese officials have indicated openness to the request, according to Aurangzeb.
He added that the renewal process would still need to be completed.
At the same time, Pakistan is seeking financial support from the United States.
The government has requested a $10 billion exchange stabilization facility from Washington.
Aurangzeb expects a response from the United States within two months.
Pakistan is also holding talks with the US Export-Import Bank.
Discussions are also underway with the US International Development Finance Corporation.
EXIM financing could support aircraft purchases for Pakistan International Airlines.
The financing could help PIA purchase Boeing aircraft following its privatization.
Meanwhile, DFC financing could support a planned $5 billion refinery modernization programme.
The finance minister said seeking support from China and the United States can happen simultaneously.
He described the approach as seeking support from both sides.
Aurangzeb said China remains a longstanding strategic partner of Pakistan.
He also pointed to Pakistan’s relationship with the US administration.
The government is seeking external financing to strengthen foreign exchange reserves.
It also needs financing support to meet upcoming debt repayment obligations.
Support from bilateral partners and international lenders remains important for Pakistan’s finances.
The government is also monitoring risks linked to higher global oil prices.
Aurangzeb said Pakistan managed the initial increase in crude prices relatively well.
However, he warned that the economic outlook has become more uncertain.
The situation is linked partly to continuing tensions in the Middle East.
Pakistan currently has enough oil stocks to meet its requirements through September.
The country is also considered well-positioned to meet its October needs.
Planning for November oil supplies has already started.
An institutional mechanism is reviewing the situation on a daily basis.
Aurangzeb warned that a prolonged regional conflict could create economic challenges.
He said an extension into November or December could affect Pakistan’s growth target.
The government has set a four percent economic growth target for the fiscal year.
Despite its financing requirements, Pakistan does not currently plan additional IMF financing.
Aurangzeb said the economic situation remains manageable.
An IMF mission is scheduled to visit Pakistan for the next programme review.
The review will assess progress under Pakistan’s $7 billion IMF programme.
Pakistan also has a Resilience and Sustainability Facility with the IMF.
The finance minister said the country remains in a strong position on key targets.
He added that Pakistan has largely met its structural benchmarks.
The developments highlight Pakistan’s efforts to secure financing from multiple partners.
The government is pursuing financial arrangements with both China and the United States.
China and US support could play different roles in Pakistan’s external financing plans.
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The proposed arrangements remain subject to negotiations and formal approval processes.
