Pakistan seeks US support for better access to global capital markets

Pakistan on Tuesday sought greater support from the United States for better access to international capital markets, increased foreign exchange reserves and improved sovereign credit ratings as Finance Minister Muhammad Aurangzeb met US Treasury Secretary Scott Bessent.

According to the Ministry of Finance, Aurangzeb briefed the US Treasury Secretary on Pakistan’s economic progress, saying that the country had moved from “macroeconomic stabilization to sustainable export-led growth.”

During the meeting, the Finance Minister also highlighted “the negative impacts of the regional situation on the Pakistani economy”, noting that the economy remains vulnerable to geopolitical developments in the region.

The ministry said Aurangzeb was seeking “increased US support for Pakistan’s path to market based on better access to international capital markets, increased foreign exchange reserves and improved sovereign credit ratings.”

The Finance Minister expressed Pakistan’s desire for the United States to cooperate regarding “better access to international capital markets, an increase in foreign exchange reserves, and greater market access based on sovereign credit ratings.”

The two sides also reviewed prospects for expanding bilateral economic ties and investment.

The Finance Ministry said that “both sides reaffirmed their commitment to deepening bilateral economic cooperation, promoting greater US investment and advancing strategic projects.”

He added that both Pakistan and the United States expressed “their commitment to promoting economic cooperation, increasing American investment and ensuring progress on strategic projects.”

Aurangzeb on Tuesday held a virtual meeting from Washington DC with senior leaders of international banking consortia under the Global Medium-Term Note Program and Pakistan’s International Sukuk Programme.

The meeting marked the beginning of a strategic partnership with selected financial institutions.

The consortia have been appointed for three years and will support issuances of conventional and Islamic financial instruments in Pakistan’s sovereign capital market. Once the required documentation and all applicable formalities have been completed, the government intends to use these structures for frequent issuances, when necessary, in accordance with its financing strategy.

Pakistan’s renewed commitment to international capital markets is supported by the country’s improving macroeconomic environment. Sustained fiscal consolidation, rebuilding external reserves, strengthening debt sustainability indicators, and continued implementation of structural reforms have bolstered investor confidence and economic credibility.

The positive reassessment of Pakistan’s macroeconomic outlook is also evident in the significant compression of sovereign credit spreads, with market prices increasingly reflecting strong underlying credit fundamentals and confidence in the country’s reform trajectory.