Pakistan plans to seek an increase in its currency-swap arrangement with China when the facility comes up for renewal in 2027, Finance Minister Muhammad Aurangzeb has said.
The existing line stands at 30 billion yuan and is fully drawn, according to the minister’s comments to Reuters.
Pakistan is also awaiting a United States decision on a proposed $10 billion exchange-stabilisation facility.
Two financing discussions
The Chinese arrangement provides access to yuan under an agreed currency-swap framework. Pakistan intends to seek a larger line during the next renewal.
The proposed US facility is a separate initiative and has not been approved.
Aurangzeb said a decision on the US proposal was expected within two months of his September comments. That expectation is not a confirmation that financing has been secured.
The minister argued that seeking financial cooperation with both China and the United States was not mutually exclusive.
Wider financing needs
Pakistan needs to manage foreign-currency payments, debt obligations and the effects of changes in global energy prices.
Access to external financing can provide flexibility, but different facilities carry different terms, costs and repayment obligations.
A currency-swap arrangement is not the same as a grant or an unrestricted addition to government revenue.
Reuters also reported discussions involving the US Export-Import Bank and US International Development Finance Corporation over potential support for aircraft purchases and an oil-refinery upgrade programme.
Those talks are separate from the proposed exchange-stabilisation facility and should not be counted as approved financing.
Economic risks
Aurangzeb warned that a prolonged Middle East conflict could threaten Pakistan’s 4% annual growth target by keeping oil prices elevated.
Higher energy import costs can increase demand for foreign currency and create pressure on domestic prices.
The next milestones are the formal US decision and negotiations over renewal of the Chinese swap line.
Until terms are announced, neither the proposed expansion nor the US facility should be treated as completed.
Source: Reuters, September 17, 2026.