Islamabad (Commerce Desk): Pakistan has decided to seek an extension of the 30 billion yuan currency swap facility obtained from China, while a response from the United States on a $10 billion exchange stabilization facility is expected within two months.
Finance Minister Muhammad Aurangzeb said Pakistan would request an extension of the 30 billion yuan swap facility from China in 2027. The entire 30 billion yuan facility provided by China has been utilized, and a formal request for additional financial support will also be made at the time of renewal.
He said a response from the United States on the $10 billion exchange stabilization facility is expected within two months, while Pakistan is also holding talks with the Export-Import Bank and Development Finance Corporation for financial support.
According to Muhammad Aurangzeb, financing from the Export-Import Bank could help with the purchase of Boeing aircraft for PIA, while cooperation is expected from the Development Finance Corporation for a $5 billion program to upgrade oil refineries.
The Finance Minister said China is Pakistan’s long-standing strategic partner, while good relations and mutual understanding also exist with the Trump administration at the leadership level. He said a prolonged conflict in the Middle East would be a matter of concern for Pakistan, and if it continues until November or December, the target of 4% economic growth could be affected.
He said Pakistan has sufficient oil reserves to meet its requirements until September, the country is in a better position regarding oil for October, while planning for November’s requirements has also begun. According to him, the government currently has no plans to seek further loans from the IMF.
Muhammad Aurangzeb said that, in Pakistan’s view, the current economic situation is manageable. The IMF mission will review Pakistan’s $7 billion program next week. Pakistan is in a good position regarding quantitative targets, while most of the structural targets have also been implemented.