WASHINGTON: Finance Minister Muhammad Aurangzeb announced on Saturday that Pakistan is keen to deepen its trade relationship with the United States, while also aiming to address the existing trade imbalance between the two countries.
Speaking at a press briefing at the Pakistan Embassy in Washington following his participation in the Spring Meetings of the International Monetary Fund (IMF) and World Bank Group, Aurangzeb also revealed that Pakistan has requested China to expand its currency swap agreement by an additional 10 billion yuan (approximately $1.4 billion), increasing the total from 30 billion to 40 billion yuan.
Highlighting Pakistan’s priorities, the minister said resolving the trade imbalance with the U.S. takes precedence over concerns about potential tariffs introduced by the Trump administration. Trump, he noted, is focused on boosting American exports globally as part of his broader economic agenda.
Addressing the Trade Surplus
Currently, Pakistan exports around $5.2 billion worth of goods to the U.S., while imports from the U.S. stand at about $2 billion—resulting in a trade surplus of $3.2 billion in Pakistan’s favor. “We’re considering ways to reduce this surplus, including importing more U.S. products such as cotton and soybeans,” said Aurangzeb.
He also mentioned that Pakistan’s ambassador to Washington promptly contacted the U.S. Trade Representative (USTR) following Trump’s tariff announcement. A U.S. trade delegation is now expected to visit Pakistan for formal negotiations, with dates to be confirmed once Aurangzeb returns to Islamabad.
Indus Waters Treaty and Regional Tensions
When asked about India’s recent suspension of the Indus Waters Treaty, Aurangzeb said Pakistan would involve the World Bank if necessary. The 1960 treaty, brokered by the Bank, governs the shared use of rivers between India and Pakistan and assigns a dispute resolution role to the World Bank.
Aurangzeb confirmed that Prime Minister Shehbaz Sharif and the federal cabinet have reviewed the situation and are ready to take the next steps. “We condemn terrorism in all forms and want peaceful relations with all neighbors—but it takes two to tango,” he remarked, acknowledging that ongoing tensions with India are “a part of life” that Pakistan must learn to navigate.
Regarding recent violence that killed 26 people at a tourist site, the minister admitted it could have a negative economic impact. Diplomatic sources noted that due to the packed schedules of World Bank officials during the Spring Meetings, the issue hasn’t been formally raised yet, and Pakistani officials are awaiting directions from Islamabad.
China Engagement and Panda Bonds
During his Washington visit, Aurangzeb also held talks with Chinese officials, including Finance Minister Lan Fo’an, seeking extensions on Pakistan’s debt repayments and additional financial backing.
He confirmed that China had agreed to roll over a $4 billion cash deposit with the IMF and that discussions were ongoing about extending the maturity of loans from the Chinese Exim Bank until at least September 2027. While a similar request was made last year, formal approval is still pending.
Aurangzeb also revealed that Pakistan is making strong progress toward issuing its first Panda Bond—yuan-denominated bonds traded in China’s domestic market. Discussions with the Asian Infrastructure Investment Bank (AIIB) and Asian Development Bank (ADB) for credit guarantees have been “constructive,” he said. “We want to diversify our lending sources, and we’re optimistic about launching an initial issue within this calendar year.”
China has been actively expanding its currency swap network with emerging economies like Argentina and Sri Lanka as part of its push to globalize the yuan.
IMF Programme and Climate Financing
The finance minister added that Pakistan expects the IMF Executive Board to approve a $1.3 billion climate resilience loan and the first review of the ongoing $7 billion bailout programme in early May. Approval would unlock a $1 billion disbursement.
Aurangzeb emphasized the critical role the IMF programme has played in stabilizing Pakistan’s economy, helping secure essential external financing and restoring investor confidence.
