Pakistan urges China to increase currency swap arrangement to 40bn Yuan

Pakistan urges China to increase currency swap arrangement to 40bn Yuan

Government aims to launch Panda bonds in Chinese market

Pakistan's Finance Minister, Muhammad Aurangzeb, has urged China to increase the currency swap arrangement during a meeting in Washington.

Currently set at 30 billion Yuan, the Pakistani side has requested an increase to 40 billion Yuan.

In October 2024 bilateral arrangement was renewed for three years after agreement reached between Chinese central bank and State Bank of Pakistan.

The currency swap arrangement aims to enhance financial cooperation between China and Pakistan, expand the use of both currencies, and promote bilateral trade and investment, an official from the finance ministry noted.

In the meeting, Aurangzeb met with China’s Vice Minister of Finance, Liao Min, reaffirming the strategic cooperative partnership between Pakistan and China.

The minister expressed gratitude for China's support in Pakistan’s socio-economic development and its assistance in securing the IMF’s Extended Fund Facility (EFF).

Aurangzeb also welcomed BYD’s decision to introduce electric vehicles in Pakistan and revealed the government's plan to launch an inaugural Panda bond in the Chinese market to diversify its financing base.

He also committed to ensuring the security of Chinese workers in Pakistan and shared that many Chinese companies are interested in expanding their investments and increasing employment opportunities in the country.

Both parties emphasized the need for online payment settlements and the integration of their respective payment systems to further facilitate economic cooperation.