Pakistan is seeking greater financing from the United States while preparing to return to international capital markets as the government works to reduce its reliance on bilateral borrowing from China.
Finance Minister Muhammad Aurangzeb said the government wants to shift the economy away from dependence on aid toward trade and investment, according to comments to the Financial Times.
Aurangzeb said the proposed $10 billion swap line with Washington is intended to provide a confidence signal to private investors.
He said Pakistan has received constructive engagement from the United States regarding the proposed arrangement and expects a response within the next couple of months.
The finance minister also highlighted the potential role of the US Export-Import Bank and the US International Development Finance Corporation (DFC) in supporting investment and trade in Pakistan.
According to Aurangzeb, the government is focusing on export-led growth instead of consumption-driven expansion.
He said consumption-led growth could quickly put pressure on Pakistan’s external account because the country remains heavily dependent on imports.
The government therefore wants to attract investment and expand exports to strengthen the country’s external position.
Pakistan has appointed banking consortiums to arrange several international financing instruments, including Eurobonds, Islamic sukuk, and rupee-denominated dollar-settled bonds.
Aurangzeb said the government is considering issuing between $1 billion and $2 billion in Eurobonds during the current fiscal year, depending on market pricing and the desired maturity.
Pakistan also plans to raise around $750 million through Yuan-denominated Panda bonds.
The finance minister said US institutions could support specific investments in Pakistan. Potential areas include financing Boeing aircraft for the recently privatized Pakistan International Airlines (PIA) and supporting US companies seeking to upgrade Pakistan’s oil refineries.
Such financing could help strengthen trade and investment ties between the two countries while supporting major infrastructure and industrial projects.
Aurangzeb clarified that stronger engagement with the United States should not be viewed as an either-or choice between Washington and Beijing. However, he confirmed that Pakistan is not seeking additional Chinese financing at present.
The government is also targeting an improvement in Pakistan’s credit rating. Aurangzeb said Islamabad aims to achieve a B+ rating within the next 12 months, with a longer-term objective of reaching the double-B category.
The shift toward international capital markets, greater US financing, and export-led growth forms part of Pakistan’s broader strategy to strengthen its external finances and reduce reliance on traditional bilateral borrowing.
