Pakistan Requests Boost in Currency Swap Line with China
By Karin Strohecker
WASHINGTON (Reuters) – Pakistan has requested China to increase its existing swap line by 10 billion yuan ($1.4 billion), according to Finance Minister Muhammad Aurangzeb. He anticipates launching a Panda bond before the year ends.
Currently, Pakistan has a 30 billion yuan swap line, and Aurangzeb expressed his hopes that reaching 40 billion renminbi would be a solid goal. He stated, “We just put in that request.”
China’s central bank is expanding currency swap lines with several emerging economies, notably Argentina and Sri Lanka.
Additionally, Pakistan is making strides in issuing its first Panda bond, which is debt issued in China’s domestic bond market and denominated in yuan. Discussions with the presidents of the Asian Infrastructure Investment Bank (AIIB) and Asian Development Bank (ADB) – potential credit enhancers for the bond issue – have been positive, Aurangzeb noted. He aims to diversify the country’s lending base and hopes to accomplish the initial bond issue within the calendar year.
Aurangzeb also expects the IMF executive board to approve in early May the Staff Level Agreement for a new $1.3 billion arrangement under a climate resilience loan program, alongside the first review of an ongoing $7 billion bailout program. A positive decision from the IMF board would release a $1 billion payout, crucial in stabilizing Pakistan’s economy.
Regarding economic implications from tensions with India, following a recent attack that resulted in the death of 26 individuals at a tourist site, Aurangzeb stated that the situation was “not going to be helpful.”
The attack incited significant reactions in India, calling for actions against Pakistan, which India accuses of supporting terrorism in Kashmir. Both nations have enacted various retaliatory measures, including Pakistan closing its airspace to Indian airlines and trade ties, while India has suspended the 1960 Indus Waters Treaty concerning water-sharing.
Trade between India and Pakistan had already declined, amounting to only $1.2 billion the previous year.
Aurangzeb estimated a growth rate of about 3% for the current financial year ending in June 2025, projecting a 4-5% growth next year, aiming for 6% thereafter.
($1 = 7.2864 Chinese yuan renminbi)
Comments (15)
John Ifunanya Ekwunoh
13:17 - 07/05/2025
When will both countries come to a halt in their differences? Enough is enough. Can't peace regin
MD Ladan
07:47 - 06/05/2025
Bery intresting
anhquan11121992@gmail.com
13:41 - 05/05/2025
Ok
Destiny Shaka
14:55 - 04/05/2025
It’s well
Destiny Shaka
14:55 - 04/05/2025
It’s well