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Pakistan’s Finance Minister Muhammad Aurangzeb requested China to roll over guaranteed debt and increase the $4.3 billion currency swap agreement to boost Pakistan’s foreign exchange reserves. The talks with Chinese Finance Minister Lan Fo’an, held during the IMF meetings, focused on strengthening economic ties and reform support.
Pakistan also requested Exim Bank to reschedule its debt due until 2027 and increase the swap facility, aiming for a total of $5.7 billion. China has previously shown a lax approach to debt collection, rolling over Pakistan’s $4 billion cash deposit as part of the IMF’s requirements in March 2025.
Pakistan’s manufacturing outlook is improving, and inflation is expected to rise slightly. Exports and remittances, especially the record $4.1 billion in remittances last month, are expected to grow. Pakistan’s reserves are at $10.6 billion, with a target of $14 billion in two months. Moreover, the World Bank projects a $800 million current account surplus for this fiscal year.
Aurangzeb also met Saudi Finance Minister Mohammed Aljadaan, who confirmed a $5 billion deposit rollover for another year.
