Pakistan Seeks Additional $1.4 Billion Swap Line from China, Plans Panda Bond Launch

Pakistan has requested an additional 10 billion yuan ($1.4 billion) from China to expand its existing currency swap line, Finance Minister Muhammad Aurangzeb confirmed during the IMF and World Bank spring meetings. The move aims to stabilize foreign currency access and bolster financial reserves.

The country currently holds a 30 billion yuan swap arrangement with China but seeks to increase it to 40 billion yuan. "From our perspective, getting to 40 billion renminbi would be a good place to move towards," Aurangzeb stated, emphasizing the strategic importance of the expanded facility.

Simultaneously, Pakistan is nearing the launch of its inaugural Panda bond, marking a significant step in diversifying its funding sources. The dual-track approach reflects Islamabad’s efforts to strengthen its economic foothold through bilateral financial instruments and capital market access.