Finance Minister Muhammad Aurangzeb over the weekend said the International Monetary Fund (IMF) cannot impose any condition that runs counter to Pakistan’s national interest, adding all ongoing economic reforms are as per the country’s priorities.
Addressing a press conference in Washington on the sidelines of annual meetings of the IMF and World Bank, he maintained the reforms introduced under the ongoing $7 billion IMF program had helped stabilize Pakistan’s economy. “Steps we took under the IMF arrangement have strengthened the economy and built confidence,” he said, adding the next tranche of $1.2 billion was expected before Dec. 31. “We anticipate the board’s approval shortly, which will pave the way for the disbursement,” he said.
To a question, Aurangzeb said the country expected to finalize a trade and tariff agreement with the U.S. within the next two weeks.
On the country’s sputtering privatization drive, the minister said the government is close to a decision on off-loading New York’s Roosevelt Hotel. He also acknowledged that curbing militancy in the country was essential for financial stability. Officials accompanying him added that the issue had surfaced repeatedly during meetings over the past week. “From credit rating agencies to commercial banks, everyone wanted to understand whether Pakistan’s security environment is now aligned with its economic recovery,” they said.
During his visit, Aurangzeb witnessed the signing of a swap agreement between the State Bank of Pakistan (SBP) and the International Finance Corporation (IFC). He noted the IFC had designated Pakistan a regional hub, describing it a strong vote of confidence in the country’s economic potential. He said the government is committed to strengthening its partnership with the IFC across key development and financial sectors.
He appreciated the IFC’s continued support for subnational finance and Digital Payment Rights initiatives, as well as its advisory role in sectors such as pharmaceuticals, electric vehicles, and commodity exchanges.
Separately, the minister participated in the 15th V20 Ministerial Dialogue on “Cost of Capital, Debt and Growth Pathways.” In an address, he highlighted the increasing frequency and intensity of devastating floods in Pakistan, emphasizing that the government is funding rescue and relief operations from its own resources. He appreciated the support of the CVF–V20 Secretariat in assisting Pakistan with the preparation of its Climate Prosperity Plan, adding financing is being made available under the Country Partnership Framework to operationalize the plan.
Aurangzeb emphasized the need to operationalize the Loss and Damage Fund and called for fast-tracking decision-making processes at the Green Climate Fund to ensure timely and effective climate action for vulnerable countries.
During his Washington engagements, the minister also called on the senior management of JP Morgan, briefing them on Pakistan’s upcoming inaugural issuance of the Panda Bond in the Chinese market. He said the “green bond” would support sustainable financing objectives. He also shared a detailed overview of the government’s privatisation program, highlighting the cabinet-approved government-to-government sale of the First Women Bank.
According to Aurangzeb, several U.S. companies have expressed interest in the Reko Diq project. He said the government is looking forward to the participation of EXIM Bank in the syndication process.
He also highlighted the ongoing digital collaboration between Saudi Arabia and Pakistan through the GO AI Hub initiative, which aims to advance innovation and technology-driven development. He urged JP Morgan to explore additional avenues of cooperation with Pakistan in areas of mutual interest, including sustainable finance, investment facilitation, and digital transformation.