Report ANI
ISLAMABAD: Pakistan plans to seek an expansion of its 30 billion yuan currency swap facility with China when the existing arrangement comes up for renewal in 2027, Finance Minister Muhammad Aurangzeb has said.
Speaking to Reuters, Aurangzeb said the entire existing 30 billion yuan facility had been drawn, while the government had not yet determined the size of the additional facility it would request.
He said Pakistan would make a formal request when the current arrangement is renewed, following consultations with Chinese officials and the country's central bank.
The finance minister also said Pakistan was awaiting a response from the United States regarding a proposed $10 billion exchange stabilisation facility, with a decision expected within two months.
Pakistan has continued to rely on external financing to strengthen its foreign exchange reserves and meet external debt obligations.
Aurangzeb said Pakistan's engagement with China and the United States was not mutually exclusive, stressing that Islamabad intended to maintain economic and financial relations with both countries.
The government is also in discussions with US financial institutions regarding potential financing for aircraft purchases for Pakistan International Airlines and a proposed oil refinery upgrade programme.
The proposed expansion of the Chinese currency swap facility would provide Pakistan with an additional source of liquidity for managing external financing pressures.
