Finance Minister Muhammad Aurangzeb has formally requested China to extend the maturity of outstanding debt and increase the currency swap arrangement to stabilize Pakistan’s financial position. The goal is to boost foreign exchange reserves from $10.6 billion to over $14 billion within two months.

During discussions with Chinese Finance Minister Lan Fo’an at the IMF Spring Meetings, Aurangzeb proposed rescheduling Export-Import Bank of China (Exim Bank) loans and expanding the bilateral currency swap, currently set at CNY 30 billion ($4.3 billion).

China has already assured continued support by rolling over Pakistan’s $4 billion cash deposits, while Pakistan is also looking to expedite the issuance of Panda Bonds to strengthen financial stability.

Aurangzeb highlighted key economic reforms in taxation, energy, privatization, and public sector restructuring and extended invitations for Chinese and Saudi finance ministers to visit Pakistan to enhance economic collaboration.

Pakistan anticipates that debt rescheduling and an expanded currency swap will help bridge external financing challenges, ensuring continued economic resilience.