The Prime Minister’s Office has issued urgent directives to finalize new currency swap agreements with the European Union, Russia, and Iran. This strategic push, integrated into the Ministry of Finance’s reform agenda, aims to decrease Pakistan’s heavy dependence on the U.S. dollar and stabilize foreign exchange reserves. By settling trade in local currencies, the government hopes to open fresh commercial avenues with regional partners and ASEAN nations, mirroring the existing $4.5 billion trade facility currently established with China. This move is overseen by the PM’s Delivery Unit as a vital step toward long-term fiscal independence and regional economic integration.
PM Office seeks progress update as reforms target trade integration, lower interest rates and exchange stability
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— Profit (@Profitpk) April 8, 2026
The initiative comes at a critical time as Finance Minister Muhammad Aurangzeb manages $4.8 billion in external debt repayments due this month. Beyond diversification, the Prime Minister has tasked the State Bank of Pakistan with bringing the policy rate below 10% and curbing dollar hoarding to stabilize the currency market. Additionally, the government is focusing on utilizing the Asian Clearing Union for settlements to keep the current account deficit under $3 billion. These reforms are intended to lower the debt-to-GDP ratio and provide a sustainable foundation for medium-term growth amidst the ongoing global and regional economic shifts.
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