Encourages banks to invest directly in Pakistan’s financial sector and trade flows
Finance Minister Muhammad Aurangzeb speaks during an interview with Reuters at the 2025 IMF and World Bank Annual Spring Meetings in Washington, DC, US, April 25, 2025. Photo: Reuters/File
Federal Minister of Finance and Revenue, Senator Muhammad Aurangzeb, concluded his visit to Washington, DC, with a series of important meetings on the last day of his participation in the Annual Meetings of the International Monetary Fund (IMF) and the World Bank.
The minister met the senior management of Abu Dhabi Commercial Bank (ADCB) and briefed them about the launch of Pakistan Panda Bond and the update of the Global Medium-Term Note (GMTN) programme, according to a press release.
He provided an update on the progress of the privatization program, expressing optimism about the accelerated privatization of the national airline.
Aurangzeb informed the ADCB team that the Government of Pakistan was close to achieving financial closure of the Reko Diq project and was looking forward to the participation of Exim Bank.
He encouraged the Bank to take direct exposure to Pakistan’s financial sector and downstream trade and investment flows.
In a separate meeting with JP Morgan senior management, the Finance Minister shared details about the upcoming inaugural launch of the Green Panda Bond in the Chinese market. He also gave an overview of the privatization programme, including the sale to G2G of First Women Bank, recently approved by the Federal Cabinet.
Senator Aurangzeb highlighted the growing interest of American companies in the Reko Diq project and anticipated the early participation of Exim Bank in the syndication process.
He also discussed avenues for digital collaboration between Saudi Arabia and Pakistan through the GO AI Hub and encouraged JP Morgan to explore more areas of partnership.
The Minister of Finance also met with Mehmet Simsek, Minister of Treasury and Finance of Türkiye, where both sides reaffirmed the strong bilateral ties and frequent engagements at the leadership level between the two countries.
Senator Aurangzeb highlighted the ongoing reforms in Pakistan in tax, energy, state-owned enterprises, privatization and public finance.
He referred to the event organized by the World Bank that showcased the transformation journey of Pakistan’s Federal Board of Revenue (FBR) and agreed on the importance of improving tax-GDP ratio and integrating data across government agencies.
Read: IMF unlocks $1.2 billion after government reviews pre-flood promises
In his meeting with Makhtar Diop, Managing Director of the International Finance Corporation (IFC), Senator Aurangzeb welcomed the IFC’s decision to make Pakistan a regional hub.
He briefed the CEO on the progress made in the Reko Diq project and expressed hope that Exim Bank would soon join the financial consortium.
The minister appreciated IFC’s continued support in subnational finance and Digital Payment Rights (DPR), as well as its advisory services in the pharmaceutical, electric vehicle (EV) and commodity exchange sectors.
He also welcomed the upcoming visit of the IFC Managing Director to Pakistan during the Spring Meetings and witnessed the signing of a Swap Agreement between the State Bank of Pakistan (SBP) and the IFC.
Senator Aurangzeb also participated in the 15th V20 Ministerial Dialogue on “Cost of Capital, Debt and Growth Pathways”. In his remarks, he highlighted the devastating impact of the recurring floods in Pakistan, highlighting the government’s commitment to fund rescue and relief operations from its own resources.
He appreciated the support of the CVF-V20 Secretariat in developing Pakistan’s Climate Prosperity Plan (CPP) and noted that funding was available through the National Partnership Framework (CPF) to operationalize it.
The Minister called for the urgent operationalization of the Loss and Damage Fund and emphasized the need to accelerate decision-making within the Green Climate Fund (GCF).
During his visit, the minister also interacted with the US-based Pakistani media, where he gave a comprehensive report on his week-long discussions and engagements with international financial institutions, partner countries and private sector stakeholders.
Read more: IMF projects Pakistan’s growth at 3.6%
Senator Muhammad Aurangzeb’s participation in the Annual Meetings of the IMF and World Bank and his extensive engagements with global financial institutions reaffirm Pakistan’s commitment to economic reform, fiscal responsibility and international cooperation.
Agreement with the IMF
Prime Minister Shehbaz Sharif confirmed a staff-level agreement with the International Monetary Fund for the disbursement of $1.2 billion and expressed hope that it would be the last such program for Pakistan.
Chairing a cabinet meeting on Thursday, he said the time has come to “free ourselves from the burden of debt.” Hard work is the first condition for independence and national dignity,” Shehbaz said, adding that Pakistan’s economic stability would strengthen its global voice and respect.
The IMF on Wednesday announced the agreement to release $1.2 billion in upcoming loan tranches after Islamabad, for now, accepted the old pre-flood budget targets and released the governance report ahead of the board meeting.
Following the board’s approval, Pakistan will have access to around $1 billion under the SEF and another $200 million under the RSF, Iva Petrova said. In total, the IMF will disburse $3.1 billion under the SAF of the $7 billion deal.
Also read: PM expects IMF to agree final Pakistan loan deal
The IMF on Tuesday projected Pakistan’s economic growth rate at 3.6% for the current fiscal year, while Finance Minister Muhammad Aurangzeb expressed hope that a staff-level agreement with the lender for two tranches worth $1.2 billion would be reached this week.
The IMF released the Washington World Economic Outlook report, projecting Pakistan’s economic growth rate at 3.6%. But he clarified that Pakistan’s economic projections “do not yet reflect the impact of the summer 2025 floods, the impact of which is still being assessed.”
