Aurangzeb appreciates China’s support for IMF, promotes economic cooperation during meetings in Washington

Finance Minister Muhammad Aurangzeb on Friday expressed appreciation for China’s continued bilateral support at the International Monetary Fund (IMF) as well as the constructive role played by its Executive Director in facilitating Pakistan’s programmatic commitments.

According to a post by Pakistan’s Ministry of Finance on

During his visit, Aurangzeb met with Chinese Finance Minister Lan Fo’an, where both sides reaffirmed their commitment to strengthening economic cooperation and deepening their strategic partnership.

The Finance Minister briefed his counterpart on Pakistan’s progress under the IMF programme, stating that the country had “successfully concluded a Staff Level Agreement for the third review under the Extended Facility of the Fund (SAF) and the second review under the Resilience and Sustainability Facility (RSF), with approval by the IMF Executive Board expected in early May.”

He further noted that Pakistan had successfully repaid its $1.4 billion Eurobond and had secured “significant additional financial support” from Saudi Arabia to strengthen its external position.

On Wednesday, the Finance Ministry said Saudi Arabia had committed $3 billion in additional deposits and was expected to be disbursed next week. The current $5 billion Saudi deposit, the minister added, would no longer be subject to the previous annual renewal agreement and would instead be extended for a longer period.

On external financing initiatives, Aurangzeb updated the Chinese side on progress regarding Pakistan’s planned maiden Panda bond issuance, which aims to diversify funding sources and expand engagement with international capital markets.

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Highlighting growing bilateral trade, he noted that the proportion of trade between Pakistan and China settled in renminbi (RMB) had increased significantly and highlighted the need for an expanded currency swap agreement to support growing trade volumes. He also welcomed China’s recognition of Pakistan’s role in facilitating dialogue and promoting regional stability.

Reaffirming Pakistan’s commitment to multilateral cooperation, Aurangzeb conveyed “full and unconditional support” for the establishment of the Shanghai Cooperation Organization (SCO) Development Bank, particularly as Pakistan prepares to assume the SCO presidency in September.

The meeting concluded with mutual recognition of the continued support provided by China’s CEOs at both the IMF and the World Bank.

Furthermore, Aurangzeb held talks with the Governor of the People’s Bank of China, Pan Gongsheng, where discussions focused on financial cooperation, market access and developments related to the IMF. According to the Ministry of Finance, the minister again expressed his appreciation for China’s support for the IMF, particularly within the Executive Board.

He also informed the Chinese central bank governor about Pakistan’s planned Panda bond issuance and sought accelerated approval from the National Association of Financial Market Institutional Investors (NAFMII).

Referring to economic pressures arising from regional developments, Aurangzeb said the government had activated targeted subsidies and demand management measures to mitigate the impact of the current situation.

The meeting concluded with an invitation from Pan for the Finance Minister to visit Beijing in the near future.

In a separate engagement, Aurangzeb met OPEC Fund for International Development CEO Abdulhamid Alkhalifa. He expressed interest in taking full advantage of the fund’s three complementary financing windows, including sovereign public sector lending, private sector financing and Islamic financial instruments.

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The Finance Minister also encouraged the OPEC Fund to deepen its engagement with Pakistan’s private sector and explore policy-based budget support operations. Radio Pakistan reported.

The Spring Meetings are being held against the backdrop of the ongoing conflict in the Middle East, which has had a significant impact on the global economy. The issue was also highlighted at the Pakistan Conference, where participants noted that the regional crisis has created a challenging economic environment for many countries.

IMF and World Bank officials have indicated that global growth forecasts could be downgraded while inflation projections could rise, warning that emerging markets and developing economies will likely be hardest hit by higher energy prices and disruptions to supply chains.