{"text":[[{"start":7.28,"text":"Pakistan is focused on securing US financing as it plots a return to global capital markets, the country’s finance minister has said, in a major shift after years of relying on state loans from China."}],[{"start":19.48,"text":"Muhammad Aurangzeb told the FT that the $10bn swap line that Pakistan sought from Washington last month was intended to serve as “a confidence signal” to private investors, as Islamabad’s military-backed government looks to capitalise on close ties to the Trump administration and accelerate international borrowing."}],[{"start":38.28,"text":"He added that he saw a “very important role” for the Export-Import Bank of the United States (ExIm Bank) and the US International Development Finance Corporation (DFC), which he said had shown “risk appetite for Pakistan”."}],[{"start":51.8,"text":"“It’s a combination of engagement with the US primarily to focus on trade and investment flows, and to help signalling with respect to international capital markets,” he said."}],[{"start":60.72,"text":"Aurangzeb said Islamabad had received “constructive engagement” from Washington over the $10bn swap line and hoped to receive an answer “in the next couple of months”."}],[{"start":70.56,"text":"Cash-strapped Pakistan has reduced fiscal deficits, brought down inflation and rebuilt reserves under the auspices of a $7bn, three-year IMF programme approved in 2024. But GDP growth, estimated by the government at 3.7 per cent for the 2025-2026 fiscal year, remains insufficient to meet the needs of its fast-growing population and poverty levels have risen."}],[{"start":94.64,"text":"Aurangzeb said the government wanted to stimulate exports to break the import-dependent country’s perennial balance of payments crises. Pakistan’s trade deficit widened to a four-year high of $39.5bn in the year to June, and exports fell."}],[{"start":109.42,"text":"“If you look at our last episode where we put the foot on the pedal by pumping liquidity, going for consumption-led growth . . . we get into trouble very quickly because we are an import-dependent economy,” he said. “So we’re keeping a very close eye on that . . . [on] more export-led growth.”"}],[{"start":124.08,"text":"A former executive at Citibank and JPMorgan who has also run Pakistan’s Habib Bank, Aurangzeb is keen to shift Pakistan’s economy “from aid to trade and investment”."}],[{"start":135.66,"text":"He said ExIm Bank could finance sales of Boeing aircraft to the newly privatised Pakistan International Airlines and help US companies to upgrade Pakistan’s oil refineries, while DFC could take equity stakes in Pakistani conglomerates."}],[{"start":150.8,"text":"Pakistan’s armed forces chief and de facto leader Field Marshal Asim Munir has also forged a close personal bond with US President Donald Trump and helped facilitate peace talks with Iran — a link that Washington believes it can leverage to tilt Islamabad away from Beijing’s orbit."}],[{"start":167.8,"text":"China is by far Pakistan’s largest creditor, holding 23 per cent of its $129.7bn in total outstanding foreign debt as of 2024, according to World Bank figures published in December."}],[{"start":180.6,"text":"Although Aurangzeb insisted that the choice between the US and China was “not an and-or discussion”, he confirmed that Pakistan was not seeking additional financing from China at the moment."}],[{"start":190.7,"text":"As part of the planned return to international borrowing, Pakistan last month appointed a consortium of banks with a three-year mandate to issue Eurobonds, another group to issue Islamic sukuk and a third to tap rupee-denominated, dollar-settled bonds. Standard Chartered and Citi are part of all three consortiums."}],[{"start":209.24,"text":"Aurangzeb said Eurobond issuance would depend on the market pricing and maturity, but estimated Pakistan was “looking at $1bn-$2bn” this fiscal year."}],[{"start":219.12,"text":"A fourth tender is planned for a consortium to issue $750mn of renminbi-denominated “panda” bonds, which he said was “very, very significant” given the size of China’s capital markets."}],[{"start":230.34,"text":"S&P last month upgraded Pakistan to a B rating, five notches below investment grade. Fitch rates it one grade lower at B minus, with a stable outlook."}],[{"start":239.84,"text":"“At this point we are working with the rating agencies to get back to B plus over the next 12 months or so,” Aurangzeb said. “But our aim is to at least look at double B and work back from there,” he added. “And there is no reason why we cannot get there.”"}],[{"start":253.2,"text":"Additional reporting by Humza Jilani in Islamabad"}],[{"start":263.16,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1787651397_2764.mp3"}