Aurangzeb appreciates China’s support for IMF, advances economic cooperation in Washington meetings

Finance Minister Muhammad Aurangzeb on Friday expressed gratitude for China’s continued bilateral support to the International Monetary Fund (IMF), as well as the constructive role played by its executive director in facilitating Pakistan’s commitments to the programme.

According to an article by Pakistan’s Ministry of Finance on

During his visit, Aurangzeb met with Chinese Finance Minister Lan Fo’an, where both sides reaffirmed their commitment to strengthening economic cooperation and deepening their strategic partnership.

The finance minister updated his counterpart on Pakistan’s progress under the IMF program, saying the country had “successfully concluded a staff-level agreement for the third review of the Extended Fund Facility (EFF) and the second review of the Resilience and Sustainability Facility (RSF), with approval of the IMF Executive Board expected in early May.”

He further noted that Pakistan had successfully repaid its $1.4 billion Eurobond and secured “significant additional financial support” from Saudi Arabia to strengthen its external position.

On Wednesday, the Finance Ministry said Saudi Arabia had committed $3 billion in additional deposits, with disbursement expected in the coming week. The existing $5 billion Saudi deposit, the minister added, would no longer remain subject to the old annual rollover agreement and would instead be extended for a longer period.

On external financing initiatives, Aurangzeb briefed the Chinese side on the progress regarding Pakistan’s planned inaugural Panda bond issuance, aimed at diversifying sources of financing and broadening engagement with international capital markets.

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Highlighting the growth in bilateral trade, he noted that the share of trade between Pakistan and China settled in Renminbi (RMB) had increased significantly, and stressed the need for an expanded currency swap agreement to support increased trade volumes. He also welcomed China’s recognition of Pakistan’s role in facilitating dialogue and promoting regional stability.

Reaffirming Pakistan’s commitment to multilateral cooperation, Aurangzeb expressed his “full and unconditional support” for the establishment of the Shanghai Cooperation Organization (SCO) Development Bank, especially as Pakistan prepares to assume the SCO chairmanship in September.

The statement added that the meeting ended with mutual appreciation for the continued support provided by China’s executive directors to the IMF and the World Bank.

Separately, Aurangzeb held talks with People’s Bank of China Governor Pan Gongsheng, during which discussions focused on financial cooperation, market access and IMF-related developments. According to the Ministry of Finance, the minister once again expressed his appreciation for China’s support for the IMF, especially in the Executive Board.

He also informed the Chinese central bank governor about the proposed issuance of Panda bonds by Pakistan and sought expedited approval from the National Association of Financial Market Institutional Investors (NAFMII).

Referring to economic pressures arising from regional development, Aurangzeb said the government had activated targeted subsidies and demand management measures to mitigate the impact of the current situation.

The meeting ended with Pan inviting the finance minister to visit Beijing soon.

In a separate engagement, Aurangzeb met Abdulhamid Alkhalifa, director general of the OPEC Fund for International Development. He expressed interest in taking full advantage of the fund’s three complementary financing windows, including public sector sovereign loans, private sector financing and Islamic finance instruments.

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The Finance Minister also encouraged the OPEC Fund to deepen its engagement with Pakistan’s private sector and explore policy-based budget support operations. Radio Pakistan reported.

The spring meetings take place against the backdrop of the current conflict in the Middle East, which has caused a significant shock to the global economy. This issue was also highlighted at the Pakistan Conference, where participants noted that the regional crisis had created a difficult economic environment for many countries.

IMF and World Bank officials have indicated that global growth forecasts could be revised down, while inflation projections could rise, warning that emerging markets and developing economies would likely be hardest hit by rising energy prices and supply chain disruptions.