Aurangzeb steps up economic diplomacy, engages Chinese, other global stakeholders

Finance Minister briefs China’s counterpart on Pakistan’s progress under IMF programme

ISLAMABAD: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, during the fourth day of the IMF-World Bank Spring Meetings in Washington, held extensive high-level engagements with Chinese leadership, global financial institutions, investors and media, highlighting Pakistan’s improving macroeconomic outlook and efforts to mobilize external financing and strengthen strategic economic cooperation.

During a meeting with Chinese Minister of Finance, Lan Fo’an, the minister expressed deep appreciation for China’s longstanding and unwavering support to Pakistan, as well as the constructive role played by China’s Executive Director at the IMF in facilitating Pakistan’s programme engagements, according to press release issued by finance ministry here Friday.

He briefed his counterpart on Pakistan’s progress under the IMF programme, including the successful conclusion of a Staff-Level Agreement for the Third Extended Fund Facility (EFF) Review and the Second Resilience and Sustainability Facility (RSF) Review, with IMF Board approval expected in early May.

He informed the Chinese side that Pakistan has successfully repaid a $1.4 billion Eurobond and secured additional financial support from the Kingdom of Saudi Arabia.

The Finance Minister also provided an update on the issuance of Pakistan’s inaugural Panda Bond and highlighted the growing share of bilateral trade settled in Renminbi, underscoring the need for an expanded currency swap facility to support increasing trade volumes.

He appreciated China’s acknowledgement of Pakistan’s active mediation role in the ongoing regional conflict and reaffirmed Pakistan’s full and unconditional support for the establishment of the SCO Development Bank during Pakistan’s upcoming Presidency of the Shanghai Cooperation Organization (SCO).

The meeting concluded with mutual appreciation for continued collaboration at both the IMF and World Bank.

In a separate meeting with Dr. Pan Gongsheng, Governor of the People’s Bank of China (PBOC), the minister provided updates on the IMF programme reviews and Pakistan’s financing strategy, including progress on the Panda bond issuance and requested expedited regulatory approvals.

He also highlighted Pakistan’s proactive policy response to the economic impact of the ongoing regional conflict, including targeted subsidies and demand management measures. Dr. Pan extended an invitation to the Finance Minister to visit Beijing in the near future.

Earlier, in a meeting with Alvaro Lario, President of the International Fund for Agricultural Development (IFAD), he underscored agriculture as a national priority, while candidly acknowledging structural challenges in productivity and value chain development.

He highlighted the government’s reform agenda focused on agricultural transformation, including leadership restructuring, capacity building through international training, and deregulation of key commodity sectors.

Aurangzeb also held a constructive meeting with Nigel Clarke of the International Monetary Fund (IMF), where he provided an update on Pakistan’s macroeconomic outlook, external financing position, and programme implementation.

Both sides agreed on the importance of maintaining exchange rate flexibility and preserving fiscal space in light of persistent global and regional uncertainties.

He participated in a J.P. Morgan Investment Seminar and highlighted Pakistan’s macroeconomic stabilization, progress under the IMF programme, and commitment to meeting all external obligations. He provided detailed insights into Pakistan’s energy management strategy in response to the ongoing crisis, including demand-side management, market-based adjustments, and targeted subsidies for vulnerable segments.

In his engagement with Moody’s, the Finance Minister reaffirmed Pakistan’s improving external position, noting the successful repayment of the Eurobond and continued timely servicing of all creditor obligations.

He also met with Dr. Abdulhamid Alkhalifa, Chief Executive Officer of the OPEC Fund for International Development and expressed interest in leveraging the OPEC Fund’s full suite of financing windows, including sovereign, private sector, and Islamic finance instruments. Emphasizing the strategic importance of water infrastructure in the current regional context, the Minister called for enhanced collaboration in climate action, food security, and digital transformation.

He extended an invitation to the OPEC Fund leadership to visit Pakistan and appreciated the invitation to participate in the Fund’s upcoming event in Vienna.