Pakistan pursues diverse financing from China and the US

Pakistan is pursuing a multi-pronged strategy to diversify its external financing and manage debt obligations. Finance Minister Muhammad Aurangzeb announced that ¥5.45 billion remains available under the country’s approved ¥7.2 billion Panda Bond programme. Following an initial successful issuance of ¥1.75 billion in China’s capital market, the government intends to utilize the remaining funds to increase access to renminbi-denominated debt.

In addition to the bond programme, Pakistan plans to request an expansion of its existing 30 billion yuan currency swap arrangement with China when the current facility expires in 2027. The government has already fully utilized the existing swap line.

Simultaneously, Pakistan is seeking financial support from the United States. This includes a request for a $10 billion exchange stabilization facility, with a response expected within two months. The government is also in discussions with the US Export-Import Bank regarding potential aircraft purchases for Pakistan International Airlines and the US International Development Finance Corporation regarding a $5 billion programme to upgrade oil refineries.