Finance Minister Muhammad Aurangzeb wrapped up a successful day of meetings at the International Monetary Fund (IMF) and World Bank Spring Meetings in Washington, securing renewed lending commitments and advancing Pakistan's economic goals, as per an official statement released on Saturday.
During a discussion with US Treasury Deputy Secretary Francis Brooke, Aurangzeb highlighted Pakistan's progress in macroeconomic stabilization and re-entry into international capital markets. He emphasized investment opportunities in minerals and energy sectors, as well as briefed the US side on digital and virtual asset regulation. Both parties discussed collaboration in energy, mineral development, and strengthening anti-money laundering frameworks. Aurangzeb reiterated the strong economic ties between Pakistan and the US and stressed the importance of ongoing US support for Pakistan's IMF program.
In a separate meeting with Jenny Chapman from the United Kingdom, Aurangzeb underscored Pakistan's historic relationship with the UK. He noted Pakistan's achievement of a current account surplus in the first nine months of the fiscal year and its commitment to meeting all fiscal targets by the end of June. Aurangzeb recognized the support from Saudi Arabia and highlighted Pakistan's successful return to international capital markets through a bond issuance after a four-year hiatus. He outlined the government's response to recent energy price fluctuations through expenditure control, full price adjustments, and targeted digital subsidies. Regarding climate resilience, he mentioned that recent flood relief efforts were entirely funded by Pakistan's own fiscal resources.
Aurangzeb also met with Shohei Hara, senior vice president of the Japan International Cooperation Agency (JICA), welcoming the resumption of JICA's lending portfolio in Pakistan after a pause. He appreciated the selection of a water supply project in Faisalabad as the first initiative under the resumed Yen loan portfolio. Both sides agreed on the need to reverse Pakistan's current negative net disbursement trend through active lending.
In a meeting with Asian Infrastructure Investment Bank (AIIB) President Zou Jiayi, Aurangzeb commended AIIB's substantial engagement in Pakistan, with a current portfolio of $1.7 billion and an additional $1 billion in the pipeline. He highlighted Pakistan's upcoming Panda bond issuance and recent Eurobond transaction as evidence of macroeconomic stabilization. He invited AIIB to align future projects with Pakistan's infrastructure priorities under the World Bank and ADB frameworks. Both parties acknowledged that Pakistan's disbursement performance with AIIB has lagged behind other multilateral partners. Aurangzeb mentioned that the prime minister has established four dedicated committees to address project implementation challenges, including compliance, land acquisition, disbursement, and procurement.
Additionally, the finance minister had productive discussions with S&P Global Ratings and Citibank. He informed both institutions about Pakistan's successful conclusion of a staff-level agreement with the IMF, pending board approval. He highlighted the recent repayment of $1.4 billion in Eurobond obligations, additional financial support from Saudi Arabia, including a $3 billion facility, and the extension of an existing $5 billion deposit until 2028. Aurangzeb also mentioned Pakistan's return to international capital markets through a private bond issuance with a yield of just under 7%. He outlined Pakistan's medium-term Global Medium Term Note strategy, including Eurobonds, Sukuk, and rupee-linked dollar-settled instruments, while also updating them on progress towards the inaugural Panda bond. Aurangzeb expressed confidence that Pakistan's improved macroeconomic fundamentals warrant a credit rating upgrade.
Later, the finance minister participated in a high-level roundtable entitled 'Delivering Social Protection Digitally: Lessons and Innovations from Pakistan, Middle East and North Africa,' organized by the World Bank. The event showcased Pakistan's digital public infrastructure initiatives and the digital transformation of the Benazir Income Support Programme. Aurangzeb drew parallels between the Covid-19 demand shock and the current Middle East supply shock, emphasizing the importance of early investment in governance and technology for effective responses. He highlighted the seamless distribution of targeted digital subsidies to two-wheeler owners, public transport users, and small-scale farmers through existing payment systems. Aurangzeb stressed that digital social protection serves as more than just a payment mechanism, but also as a powerful tool for financial inclusion and economic empowerment, particularly for women entering the formal financial system for the first time.
