Aurangzeb meets Baroness Jenny Chapman

WASHINGTON: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held an important meeting with Jenny Chapman, Baroness Chapman of Darlington, Minister for International Development and Africa, United Kingdom, on the sidelines of the World Bank–IMF Spring Meetings in Washington, D.C.

At the outset, the Finance Minister reaffirmed Pakistan’s longstanding relationship with the United Kingdom. On the macroeconomic front, he highlighted that Pakistan has achieved a current account surplus for the first nine months of the fiscal year and reiterated the Government’s firm commitment to meeting all fiscal targets by the end of June. He also acknowledged the external support received from the Kingdom of Saudi Arabia.

The Finance Minister noted that Pakistan has returned to international capital markets for the first time in four years through a bond issuance. Addressing the energy price shock, he outlined the Government’s policy response, including expenditure reduction and austerity measures, full price transmission, targeted subsidies, and direct disbursement into digital wallets.

He further informed that a staff-level agreement has been successfully concluded with the International Monetary Fund (IMF), with Executive Board approval expected shortly. The Finance Minister underscored the government’s focus on structural reforms, including rationalisation of the tax system, reduction in energy sector costs, and addressing elevated financing costs.

On climate resilience, the Finance Minister noted that during the most recent floods, Pakistan—owing to improved fiscal buffers—was able to finance disaster relief entirely from its own resources, without recourse to international pledges. He also informed that Pakistan has developed a forward-looking National Disaster Management Centre equipped with AI and satellite technology.

The Finance Minister raised population growth as one of the most critical long-term development challenges facing Pakistan, noting that it features as one of the three key verticals in the World Bank’s ten-year Country Partnership Framework for the country.

The meeting concluded with the Finance Minister acknowledging the contribution of the United Kingdom’s Foreign, Commonwealth & Development Office (FCDO).

Copyright Business Recorder, 2026