rki.news | Sources Reuters/Dawn
ISLAMABAD, Sept. 17 — Pakistan expects to seek an expansion of its 30 billion yuan currency swap arrangement with China when it expires in 2027, Finance Minister Muhammad Aurangzeb said Thursday.
He also said Pakistan expected a US response within two months on a proposed $10 billion exchange stabilization facility. The government is discussing financing with the US Export-Import Bank and Development Finance Corporation.
Aurangzeb said Pakistan remained reliant on external financing to strengthen foreign exchange reserves and meet debt obligations, while describing relations with China and the United States as important.
Discussing higher crude oil prices amid the ongoing Middle East conflict, he said Pakistan had managed the initial impact but warned prolonged disruption could put the government’s 4 percent economic growth target at risk.
Pakistan has sufficient oil stocks through September and is well positioned for October, he said. Planning for November supplies is underway.
Aurangzeb said the government had no plans to seek additional IMF financing or emergency support.
“As of now, our considered view is that it’s manageable,” he said.
An IMF mission is due next week for the fourth review of Pakistan’s $7 billion programme and the third review of its Resilience and Sustainability Facility. Aurangzeb said Pakistan was in good stead with quantitative benchmarks and largely compliant with structural benchmarks.
Pakistan Sees Manageable Outlook Despite Oil Market Pressures
