FinMin advances reform and financing agenda at IMF-World Bank meetings

PAKISTAN:

Pakistan and the International Finance Corporation have agreed to accelerate the financial close of the Reko Diq project, as Finance Minister Muhammad Aurangzeb began a series of high-level engagements with global financial institutions in Washington.

In a meeting with Riccardo Puliti, International Finance Corporation (IFC) regional vice president for the Middle East, Central Asia, Turkey, Afghanistan and Pakistan, Aurangzeb praised the IFC’s role in boosting private investments under its 10-year Country Partnership Framework (CPF). He also welcomed the opening of IFC’s new regional office in Islamabad, calling it “a step towards deeper collaboration and increased investment momentum.”

The meetings take place on the sidelines of the IMF and World Bank Annual Meetings, where Aurangzeb represents Pakistan to maintain reform momentum and attract long-term financing.

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In discussions with the IMF’s Jihad Azour and the World Bank’s Axel van Trotsenburg, both sides reaffirmed their commitment to “maintaining reform momentum and macroeconomic discipline” in the review of the Extended Fund Facility (EFF). Aurangzeb highlighted Pakistan’s climate vulnerabilities, citing the impact of flooding on agriculture and GDP, and called for increased investment in adaptation and mitigation.

At the Commonwealth Finance Ministers’ meeting, Aurangzeb called for “concrete actions for a resilient and prosperous Commonwealth”, supporting initiatives such as the Financial Infrastructure and Resilience Center and the Technical Assistance Fund. He stressed the need to make climate financing tools operational, in particular the Loss and Damage Fund.

In a separate meeting with US Deputy Treasury Secretary Robert Kaproth and Advisor Jonathan Greenstein, Aurangzeb briefed them on Pakistan’s stabilization indicators under the IMF program and discussed the new legislation on virtual assets. He called on US investors to explore opportunities in the oil and gas, minerals, agriculture and information technology sectors.

Speaking at the US-Pakistan Business Council, Aurangzeb said private sector growth was key to maintaining economic momentum, assuring business leaders that “all genuine concerns will be addressed.”

He also met with the President of the Islamic Development Bank (IDB), Dr. Muhammad Sulaiman Al-Jasser, thanking the Bank for its partnership and financing for two sections of the M-6 highway. Discussions focused on cooperation on polio eradication, oil financing and a new National Engagement Framework (CEF).

In a meeting with Citi Bank representatives, Aurangzeb highlighted Pakistan’s “stabilizing macroeconomic outlook, supported by reforms and improving credit ratings”, and called the country an “emerging regional hub for digital innovation and financial services”.

The day concluded with interviews with Reuters and AP, followed by a dinner hosted by Ambassador Rizwan Saeed Sheikh, attended by U.S. officials and community leaders.

Aurangzeb praised overseas Pakistanis for their contributions and reaffirmed the government’s resolve to “actively involve them in national development”.

FinMin is in Washington for a 6-day trip to attend the week-long plenary meetings of the International Monetary Fund (IMF) and the World Bank (WB) – gatherings that bring together finance ministers, central bankers and development leaders from around the world.

Learn more: Negotiations with IMF stalled over dispute over flood losses

His visit comes at a critical time for Pakistan’s economy, after negotiations between Islamabad and an IMF mission over the $8.4 billion loan program ended without a Staff Level Agreement (SLA).

He will also hold bilateral meetings with the finance ministers of China, the United Kingdom, Saudi Arabia, Turkey and Azerbaijan, as well as senior officials from the White House and the US Treasury.

Aurangzeb is expected to deliver a speech on MENAP and G24 platforms, participate in World Economic Forum (WEF) events and attend a regional roundtable on digital transformation of the Federal Board of Revenue (FBR).

The visit aims to advance Pakistan’s reform agenda, secure international support for economic stabilization and investment, and strengthen engagement with multilateral lenders and private investors.