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ISLAMABAD: Pakistan&rsquo;s Finance Minister Muhammad Aurangzeb on Thursday highlighted the country&rsquo;s forward-looking financing strategy and renewed engagement with international capital markets, underscoring improving macroeconomic stability and sustained reform momentum during high-level engagements at the IMF&ndash;World Bank Spring Meetings 2026. Speaking in an interview with Maria Bartiromo on the Fox Business Network program &ldquo;Mornings with Maria,&rdquo; the finance minister said Pakistan is preparing to re-enter global capital markets through diversified instruments, including its inaugural Panda bond issuance and potential Eurobond offerings. &ldquo;He noted that the government is preparing for its inaugural Panda Bond issuance, alongside exploring Eurobond and other commercial financing avenues to diversify funding sources and sustain investor confidence,&rdquo; the Ministry of Finance said in an official statement. Aurangzeb emphasized that Pakistan&rsquo;s return to international markets comes after a four-year gap and is part of a broader strategy to strengthen external financing channels and deepen investor engagement. During a separate meeting with Rothschild &amp; Co., the minister outlined plans for re-accessing capital markets through &ldquo;Eurobonds, a Panda bond, and dollar-settled rupee-linked transactions&rdquo; as part of a diversified financing framework. He noted that the Panda bond issuance is at an advanced stage, with regulatory approvals expected shortly. The finance minister also welcomed advisory input on liability management operations, describing them as &ldquo;a strategic tool to help compress Pakistan&rsquo;s yield curve and strengthen market confidence,&rdquo; according to the statement. IMF engagement and external financing outlookIn a separate meeting with Nigel Clarke of the International Monetary Fund, Aurangzeb reviewed programme implementation and Pakistan&rsquo;s external financing outlook, noting that key economic indicators remain broadly on track. He informed that the current account performance has been &ldquo;stronger than expected,&rdquo; supported by robust remittance inflows, particularly during Ramadan, while foreign exchange reserves are being reinforced through financial support from the Kingdom of Saudi Arabia, including deposit rollover arrangements. &ldquo;The Finance Minister outlined Pakistan&rsquo;s strategy to diversify its financing sources, including plans to access international capital markets through instruments such as an inaugural Panda bond, Eurobond issuances, and local-currency financing to mitigate foreign exchange risks,&rdquo; the finance ministry said. Aurangzeb also &ldquo;appreciated Mr. Clarke&rsquo;s positive assessment of Pakistan&rsquo;s programme implementation and financing strategy,&rdquo; particularly the emphasis on developing multiple funding avenues to enhance economic resilience. Both sides agreed that geopolitical and regional shocks may persist longer than anticipated, underscoring &ldquo;the importance of maintaining exchange-rate flexibility and preserving fiscal space, rather than pursuing growth through unsustainable public borrowing,&rdquo; according to the official statement. The minister welcomed the forthcoming IMF mission to Pakistan next month for discussions on the federal budget and programme review. Macroeconomic stability and reform momentumAurangzeb said Pakistan&rsquo;s improving economic fundamentals underpin its re-entry into global markets, citing stable macroeconomic indicators and strengthened fiscal and external buffers. &ldquo;He added that the country&rsquo;s macroeconomic indicators remain stable, supported by strengthened fiscal and external buffers,&rdquo; the statement said. The minister noted that remittances remained robust, reaching approximately $3.8 billion in March, while Pakistan also recorded a current account surplus. He expressed confidence that the economy would achieve around 4 percent growth in the current fiscal year and maintain foreign exchange reserves at levels covering about three months of imports. Highlighting Pakistan&rsquo;s track record, he said the country had &ldquo;successfully repaid its USD 1.4 billion Eurobond on time,&rdquo; reinforcing its commitment to meeting sovereign obligations. At multiple engagements during the Spring Meetings, Aurangzeb underscored Pakistan&rsquo;s ongoing reform programme supported by the IMF, including fiscal consolidation, structural reforms, and improvements in public financial management. He reaffirmed that Pakistan has secured sufficient external financing to meet its fiscal year 2026 obligations. Global engagement and climate finance pushIn meetings with global leaders, including Ant&oacute;nio Guterres, the finance minister highlighted Pakistan&rsquo;s role in promoting regional stability and addressing global economic challenges, particularly the impact of ongoing Middle East tensions on energy and food security. &ldquo;He noted that Pakistan&rsquo;s leadership is actively engaged in advancing diplomatic efforts&hellip; aimed at sustaining the ceasefire and paving the way for further negotiations,&rdquo; the finance ministry said. Aurangzeb also pointed to Pakistan&rsquo;s growing focus on climate finance and sustainable growth, citing support from the World Bank Group under its Country Partnership Framework and collaboration with international partners on blended finance solutions. &ldquo;Both sides agreed on the importance of developing a robust pipeline of blended finance transactions&hellip; to reduce overall borrowing costs,&rdquo; the statement said following discussions with financial institutions. The minister highlighted structural shifts in Pakistan&rsquo;s economy, including digital transformation, privatization of state-owned enterprises, and expansion of renewable energy capacity, noting that these reforms are aimed at improving governance, enhancing competitiveness, and attracting long-term investment. Managing global shocksAddressing external risks, Aurangzeb described the ongoing Middle East situation as a &ldquo;major global supply shock,&rdquo; noting its implications for energy procurement, pricing, and logistics. He said the government&rsquo;s immediate focus remains on ensuring supply chain continuity, while monitoring second- and third-order impacts on inflation, growth, and the external sector. &ldquo;The extent of second and third-order impacts&hellip; would depend on the duration and intensity of the conflict,&rdquo; the statement noted. Finance chief expresses deep appreciation for China&rsquo;s long-standing, unwavering support On the sidelines of the World Bank-IMF Spring Meetings 2026, the finance minister also met his Chinese counterpart Lan Fo&rsquo;an, where Senator Aurangzeb expressed deep appreciation for China&rsquo;s long-standing and unwavering bilateral support to Pakistan. He briefed his Finance Minister Lan on Pakistan&rsquo;s performance under the IMF program, noting the successful conclusion of a Staff-Level Agreement for the third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF), with IMF Executive Board approval expected in early May. The finance minister informed that Pakistan has successfully repaid its USD 1.4 billion Eurobond and has secured significant additional financial support from Saudi Arabia to strengthen its external position. He also provided an update on the progress of Pakistan&rsquo;s inaugural Panda bond issuance, as part of efforts to diversify financing sources and deepen engagement with international capital markets. Highlighting growing economic linkages, the finance minister noted that the share of Pakistan-China trade settled in Renminbi (RMB) has increased significantly, underscoring the need for an expanded currency swap arrangement to support rising trade volumes. The finance minister appreciated Minister Lan&rsquo;s acknowledgement of Pakistan&rsquo;s active role in facilitating dialogue and promoting stability in the region.

Economy

Pakistan’s Finance Minister Muhammad Aurangzeb on Thursday highlighted the country’s forward-looking financing strategy and renewed engagement with international capital markets, underscoring improving macroeconomic stability and sustained reform momentum during high-level engagements at the IMF–World Bank Spring Meetings 2026.

At IMF-World Bank meetings, Pakistan outlines global market return strategy

Reuters

WASHINGTON, Oct 14 (Reuters) - Pakistan is set to sign a preliminary deal on a review of its loan programme with the International Monetary Fund this week, the country&#39;s finance minister said, a key step to securing another $1.24 billion payout from the lender. An IMF team left Pakistan last week without signing so-called staff-level agreements on reviews of its two main support programmes which are worth a combined $8.4 billion. &quot;The mission was on the ground for a couple of weeks, we had very constructive dialogue with them around the quantitative benchmarks, the structural benchmarks, and we&#39;ve been having some follow-up discussions,&quot; Muhammad Aurangzeb told Reuters during an interview on the sidelines of the IMF and World Bank annual meetings. &quot;During the course of this week, we&#39;re hoping that we can get the SLA done.&quot; RETURN TO CAPITAL MARKETSPakistan stocks closed 4% up after the news. Countries under IMF lending programmes need to pass regular reviews, which, once signed off by the Fund&#39;s executive board, trigger loan tranche payments. The IMF support agreed in September 2024 helped shore up Pakistan&#39;s $370 billion economy following a severe economic crisis that sent its currency tumbling. Aurangzeb said the government now plans to return to capital markets, starting with its first green bond denominated in Chinese yuan before the end of the year, followed by an at least $1 billion international bond. &quot;Euro, dollar, Sukuk, Islam Sukuk - we&#39;re keeping our options open,&quot; he said. Long-delayed state asset sales are also expected to gain traction now after disappointing progress last year. Islamabad wants to sell off three power distribution companies and national flag carrier Pakistan International Airlines. &quot;We are quite hopeful,&quot; Aurangzeb said about the planned airline sale, adding that lucrative reopened routes to Europe and Britain made it &quot;a very good proposition.&quot; If it takes off it would be Pakistan&#39;s first major privatisation in roughly two decades. A deal collapsed last year after a single lowball offer, but the government has since drawn interest from five domestic business groups including Airblue, Lucky Cement, investment firm Arif Habib and military-backed Fauji Fertilizer. Final bids are expected later this year. The government also hopes the privatisation of a yet to be named financial institution could move ahead this month. MEETING WITH US OFFICIALSAurangzeb, who is expected to meet with U.S. Treasury Secretary Scott Bessent this week, said Pakistan was relieved to have ended up with a 19% U.S. tariff having originally braced for a 29% levy. Discussions about U.S. investments in the country&#39;s oil and gas and minerals and mining sectors are now taking place, he said, though he added it was early days. Pakistan recently signed a memorandum of understanding with Reko Diq, run by mining firm Barrick Gold, for a first copper mine, with the overall project potentially growing to as much as $6.5 billion to $7 billion, Aurangzeb said. &quot;The potential of this sector is huge,&quot; he said, citing growing demand due to the global energy transition away from fossil fuels. Pakistan is also trying to maintain strong ties with China. &quot;I don&#39;t quite frankly see it as an and-or discussion, it&#39;s very much an and-and discussion for us,&quot; he said, when asked whether Pakistan&#39;s growing ties with Washington signalled a shift in its dealings with Beijing. Asked whether Washington&#39;s reluctance to fund climate change projects could hit Pakistan, Aurangzeb said the country was well-positioned to weather it, given a $1.3-billion Resilience and Sustainability facility with the IMF as well as a $2-billion World Bank programme, of which one-third is earmarked for climate change, and other programmes. &quot;I think there is enough (available funding) at this point in time that we can move forward with the adaptation agenda. The ball is in our court.&quot;

Pakistan will sign a preliminary IMF loan review deal this week, unlocking $1.24 billion. Finance Minister Aurangzeb said the government plans green and international bonds, privatisation of PIA, and renewed investment talks with the U.S. and China.

Pakistan finmin sees staff deal on $1.2 billion IMF payout this week

ISLAMABAD: Pakistan&#39;s Federal Minister for Finance Senator Muhammad Aurangzeb has departed for the United States to attend the annual meetings of the International Monetary Fund (IMF) and the World Bank.&nbsp;According to the Ministry of Finance, the minister will represent Pakistan at the plenary sessions of both international financial institutions and hold meetings with senior officials of the IMF, World Bank, International Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA).&nbsp;During his visit, Senator Aurangzeb will hold a one-on-one meeting with World Bank President Ajay Banga and IMF Managing Director Kristalina Georgieva. He will also participate in sessions of the G24, the Middle East, North Africa and Pakistan (MENAP) platform, and the World Economic Forum (WEF).&nbsp;The finance minister will deliver a keynote address at the MENAP Forum and attend a regional roundtable organized by the World Bank on FBR&rsquo;s digital transformation. Tax authorities from various countries will also share their reform experiences at the event.&nbsp;His schedule includes meetings with senior officials of the White House, the US State Department, the Treasury Department, and the International Development Finance Corporation (DFC).&nbsp;The minister is also expected to meet his counterparts from China, the United Kingdom, Saudi Arabia, T&uuml;rkiye, and Azerbaijan.&nbsp;During the six-day visit, Senator Aurangzeb will participate in more than 65 events, including sessions with global investors, credit rating agencies, and think tanks, where he will highlight Pakistan&rsquo;s economic outlook and investment opportunities.

Finance Ministry says Aurangzeb will hold meetings with senior officials of the IMF, World Bank, International Finance Corporation, and Multilateral Investment Guarantee Agency.

Pakistan's finance minister departs for US to attend IMF, World Bank meetings

ISLAMABAD: Pakistan&rsquo;s Economic Coordination Committee (ECC) has approved the commercial import of used vehicles for the first time in years, an official statement released by the finance division said, signaling a major shift in the country&rsquo;s trade policy.&nbsp;Chaired virtually from New York by Finance Minister Muhammad Aurangzeb, the ECC approved amendments to the Import Policy Order, 2022, allowing the import of used vehicles up to five years old until June 30, 2026. After that, the age limit will be lifted entirely.&nbsp;According to the official statement, &ldquo;such commercial importation would remain subject to strict compliance with prescribed environmental and safety standards.&rdquo;&nbsp;To moderate the impact on local industry, a 40% Regulatory Duty (RD) will be imposed on these imports, in addition to existing customs duties.&nbsp;&ldquo;This enhanced duty will remain applicable until 30th June 2026. Thereafter, the duty shall be reduced gradually by 10% points per year, reaching zero by 2029-30,&rdquo; the Finance Division said in a press release.&nbsp;Analysts say the move could help diversify Pakistan&rsquo;s auto market and make vehicles more affordable, though concerns over environmental enforcement remain.&nbsp;In a separate development, the ECC approved a technical supplementary grant of Rs800 million [approximately $2.8 million for the Pakistan Virtual Asset Regulatory Authority (PVARA), as part of efforts to regulate the country&rsquo;s growing digital asset space.&nbsp;The meeting included key cabinet members overseeing petroleum, energy, and food security, as well as senior regulatory officials.

The finance division has approved limited commercial imports of used vehicles with environmental conditions and new duties. The government also allocated $2.8 million to strengthen regulation of digital assets through a new authority.

Articles tagged with "Pakistan Finance minister"

At IMF-World Bank meetings, Pakistan outlines global market return strategy

Pakistan finmin sees staff deal on $1.2 billion IMF payout this week

Pakistan's finance minister departs for US to attend IMF, World Bank meetings

Pakistan opens doors to used car imports