Federal Finance Minister Muhammad Aurangzeb held a series of high-level meetings in Washington, signaling renewed confidence in Pakistan’s economy. He expressed optimism about an upcoming IMF tranche and outlined plans to re-enter global financial markets.
During his visit to Washington, the finance minister met with international financial institutions and senior US officials as part of Pakistan’s accelerating economic diplomacy.
He emphasized that Pakistan is actively engaging global partners to strengthen its financial position and attract investment.
Aurangzeb said the International Monetary Fund (IMF) Executive Board is expected to approve a $1.2 billion installment next month. He stressed the importance of continued US support for Pakistan’s IMF program during a meeting with US Treasury Deputy Secretary Francis Brooke, where both sides also agreed to enhance cooperation against money laundering and terrorist financing.
Panda Bonds and global market return
The finance minister announced that Pakistan plans to issue Panda Bonds in May, marking a significant step toward re-entering global financial markets after four years.
He noted that China’s approval is awaited for the issuance, and efforts are underway to finalize the process. Aurangzeb also hinted at additional funding through Sukuk and other sources as part of the country’s medium-term financial strategy.
In meetings with representatives of Citibank and S&P Global Ratings, Aurangzeb highlighted improving economic indicators as a key factor behind the anticipated upgrade in Pakistan’s credit rating.
He described the successful repayment of Eurobonds and declining interest rates as positive developments, adding that investor confidence is gradually recovering.
Global economic challenges
Speaking at a World Bank roundtable, Aurangzeb explained that the COVID-19 pandemic created a demand shock, while the current Middle East situation represents a supply shock.
He said Pakistan is adapting its policies to navigate these global challenges while maintaining economic stability.
The minister underscored the importance of digitalization in documenting and improving the economy. He noted that modern payment systems are ensuring transparent and efficient subsidy delivery, while digital initiatives are enhancing financial inclusion and providing women with greater access to banking services.
Asian Infrastructure Investment Bank
Aurangzeb also met with Asian Infrastructure Investment Bank President Zou Jiayi and invited the institution to expand its investment footprint in Pakistan. The meeting highlighted Pakistan’s commitment to strengthening partnerships with multilateral financial institutions.
The minister’s engagements in Washington reflect a broader effort to position Pakistan as a stable and attractive destination for global investors.
