Pakistan’s Finance Minister Muhammad Aurangzeb has expressed the country’s eagerness to strengthen its business ties with the United States, while also seeking ways to address the existing Pak-U.S. trade imbalance.
Speaking at a news briefing at the Pakistan Embassy in Washington, following his visit to the Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group, Aurangzeb revealed that Pakistan has asked China to augment its currency swap line by an additional 10 billion yuan (approximately $1.4 billion). Pakistan currently maintains a 30 billion yuan swap line with China, and the minister stated, “From our perspective, getting to 40 billion renminbi would be good.”
Highlighting Islamabad’s priorities, Aurangzeb stressed that addressing the trade imbalance with the US is more important for Pakistan than the Trump administration’s proposed tariffs. He pointed out that President Trump remains determined to boost US exports to its trading partners as part of his broader trade agenda.
Currently, Pakistan exports approximately $5.2 billion worth of goods to the US, while imports from the United States are around $2 billion, resulting in a surplus of about $3.2 billion in Pakistan’s favor. Aurangzeb said Pakistan is considering importing more goods such as American cotton and soybean to address the imbalance.
He added that following President Trump’s announcement of new tariffs, Pakistan’s ambassador in Washington immediately contacted the United States Trade Representative (USTR). A US delegation is expected to visit Pakistan for formal talks, with the date to be finalized upon his return to Islamabad.
When asked about Pakistan’s response to India’s suspension of the Indus Waters Treaty last week, Aurangzeb stated, “If required, we will come to it when it’s appropriate.” The 1960 Indus Waters Treaty, brokered by the World Bank, governs the use of rivers shared by India and Pakistan and allows the Bank to arbitrate disputes.
He confirmed that Prime Minister Shehbaz Sharif and the federal cabinet have deliberated on the issue and are prepared to move forward. “We condemn terrorism wherever it happens. We want good relations with all our neighbours but it takes two to tango,” Aurangzeb remarked, noting that tensions with India were a persistent reality that both sides needed to manage.
Addressing concerns about the potential economic impact of recent tensions following the killing of 26 people at a tourist site earlier this month, Aurangzeb acknowledged that the situation would not be helpful. Diplomatic sources indicated that due to the busy schedule of World Bank officials during the Spring Meetings, Pakistani diplomats could not immediately raise the issue and were awaiting instructions from Islamabad.
During his Washington meetings, Aurangzeb also engaged with Chinese officials, including Finance Minister Lan Fo’an, to seek extensions in Pakistan’s debt repayment schedules and additional financial support. He confirmed that Pakistan has asked China to extend the repayment period for its guaranteed debt and increase the $4.3 billion currency swap arrangement to bolster the country’s critically low foreign exchange reserves. Officials said he was assured that China would roll over Pakistan’s $4 billion cash deposit with the IMF.
Discussions also included the rescheduling of debt owed to the Chinese Export-Import Bank during Pakistan’s ongoing IMF program, with Pakistan seeking an extension until September 2027. Aurangzeb noted that a similar request had been made last year but was still awaiting formal approval.
Pakistan has also advanced its plans to issue its first Panda Bond — a bond issued in China’s domestic market and denominated in yuan. Talks with the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB) for providing credit enhancements for the bond were described as constructive. “We want to diversify our lending base and we have made some good progress around that — we are hoping that during this calendar year we can do an initial print,” Aurangzeb said.
China has been promoting currency swap arrangements with emerging economies like Argentina and Sri Lanka to internationalize the yuan, aligning with Pakistan’s efforts.
Aurangzeb further mentioned that he 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 Pakistan’s ongoing $7 billion bailout program. Board approval would trigger the disbursement of a $1 billion tranche, providing essential external financing and strengthening market confidence in Pakistan’s economy.
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