Aurangzeb urges IFIs to align financing terms with improved ratings

ISLAMABAD: Finance Minister Muhammad Aurangzeb on Wednesday urged international financial institutions to align financing terms with Pakistan’s improved sovereign ratings and expanding access to international capital markets, while reaffirming the government’s commitment to sustained economic reforms, fiscal discipline and regional cooperation.

During a series of high-level meetings with senior officials of the International Monetary Fund (IMF), the Multilateral Investment Guarantee Agency (MIGA) and the Asian Infrastructure Investment Bank (AIIB) on the sidelines of the World Bank Group–IMF Annual Meetings 2026 in Bangkok, Thailand, the finance minister reviewed Pakistan’s economic progress, discussed financing and guarantee arrangements, and explored support for infrastructure development, energy security and future capital market issuances.

In a meeting with MIGA Managing Director Tsutomu Yamamoto, Aurangzeb emphasized that financing terms should reflect Pakistan’s improved sovereign ratings and access to international capital markets.

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He welcomed MIGA’s revised pricing and expressed the desire to proceed with Board consideration and documentation, said a press release issued by finance ministry here.

The two sides also reviewed a hydropower-related case before the UK Supreme Court, with further steps contingent on the court’s judgment, it added.

In separate discussions with IMF Deputy Managing Director Nigel Clarke, the finance minister highlighted improvements in Pakistan’s fiscal and external accounts, including three consecutive years of primary surpluses, stronger foreign exchange reserves and a declining debt-to-GDP ratio. He also pointed to Pakistan’s return to international capital markets and robust investor participation as indicators of growing confidence in the economy.

Aurangzeb appreciated the IMF’s continued partnership and stressed the importance of strong political ownership and consistent implementation of structural reforms. Discussions covered sustainable growth, policy continuity and the need to maintain fiscal discipline without compromising spending on health and education.

Clarke underscored the importance of adequate reserve buffers and stronger revenue mobilisation to support investment in human capital, infrastructure and public services.

Addressing the Middle East, North Africa, Afghanistan and Pakistan (MENAP) meeting with the IMF managing director, Aurangzeb highlighted Pakistan’s fiscal deficit at a 22-year low, economic growth of 3.7 per cent and foreign exchange reserves at a historic high, covering three months of imports. He also cited sovereign rating upgrades, the September Eurobond issuance and the October 7 IMF staff-level agreement as evidence of progress.

The minister reaffirmed the government’s commitment to reforms and said targeted, budget-neutral and time-bound subsidies would help protect low-income households and preserve social cohesion. He also called for diversified energy sources and trade routes, deeper regional integration, and greater investment in logistics and food systems to strengthen resilience against climate and regional shocks.

Emphasizing Pakistan’s renewed commitment to multilateralism, he expressed the country’s readiness to contribute actively to regional cooperation.

In a separate meeting with AIIB President Zou Jiayi, Aurangzeb discussed infrastructure financing, energy security and economic resilience, identifying power transmission and railway modernisation as key priorities. The AIIB is targeting approval of a power transmission project before the end of the year.

The discussions also covered financing options for the Karachi-Rohri section of the Main Line-1 (ML-1) railway project, including possible cofinancing with the Asian Development Bank (ADB) or parallel financing for other sections.

Aurangzeb stressed the need for a multi-year lending programme, timely project execution and greater private sector participation through public-private partnerships. The two sides also explored emergency budget support to address energy and food security pressures, alongside potential climate-focused policy financing.

The finance minister appreciated AIIB’s guarantee support for Pakistan’s Panda bond and outlined efforts to diversify financing sources, secure longer maturities and reduce refinancing and rollover risks. He also welcomed the bank’s readiness to support future capital market issuances and explore technical cooperation on Eurobond tokenisation.

The meetings underscored Pakistan’s efforts to consolidate macroeconomic stability, sustain reform momentum and mobilise multilateral financing and private investment for infrastructure, human development and long-term economic growth.