Pakistan Asks China to Rollover Outstanding Debt

Finance Minister Muhammad Aurangzeb has formally requested China to roll over its maturing debt and increase the size of the $4.3 billion currency swap arrangement to boost Pakistan’s foreign exchange reserves from $10.6 billion to over $14 billion within two months. The requests were made to Chinese Finance Minister Lan Fo’an during a bilateral meeting on the sidelines of the IMF Spring Meetings in Washington, reported Express Tribune. Aurangzeb asked China to reschedule Export-Import Bank of China (Exim Bank) loans maturing through September 2027 and to expand the bilateral currency swap, which is currently capped at CNY 30 billion ($4.3 billion). No formal approval has been given so far. China has already assured the IMF it will roll over Pakistan’s $4 billion cash deposits. Pakistan also sought Chinese support to fast-track the delayed issuance of Panda Bonds. Aurangzeb updated China on key economic reforms underway under the IMF’s Extended Fund Facility, including measures in taxation, energy, privatization, and public sector restructuring. He also invited both Chinese and Saudi finance ministers to visit Pakistan. Pakistan expects the Exim Bank debt rescheduling and the expanded swap to help bridge its external financing gap.