Aurangzeb seeks better financing terms, expanded multilateral support for Pakistan

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.

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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. 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.

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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 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.

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Meanwhile, Muhammad Au­rangzeb said Pakistan’s fiscal def­icit had declined to 2.6 percent of GDP from a peak of 12.5 percent, while tax revenues increased by 40 percent over the past two years. The minister was talking at a penal discussion on “Mitigat­ing Sovereign Risks in Market-Access Countries” at the World Bank–IMF Annual Meetings 2026, Bangkok. He attributed the economic turnaround to fiscal discipline, revenue mobilisation, debt management and structural reforms. He stressed the need to broaden the tax base, improve tax administration and leverage technology and process reforms to enhance revenue collection. The minister acknowledged that securing tax compliance remained a major challenge, ob­serving that persuading people to pay taxes was among the most difficult aspects of economic re­forms. Acknowledging resistance to changes in the status quo, Au­rangzeb said structural reforms required political commitment and sustained discipline. The minister said rating upgrades and the restoration of market access had provided external validation of Pakistan’s economic direc­tion, adding that the government was committed to maintaining the reform momentum. He em­phasised that macroeconomic stability, although essential, was only the foundation for recovery, and that Pakistan now needed to transition towards sustainable economic growth to ensure that the benefits of reforms reached the wider population.

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Meanwhile, the finance minis­ter participated in the Citi Macro Forum Session and briefed inter­national investors on Pakistan’s economic outlook and reform priorities. Addressing the impact of the Middle East conflict, the finance minister outlined mea­sures to maintain energy supplies and provide targeted relief to vul­nerable groups within existing budgetary allocations. He reaf­firmed Pakistan’s commitment to sustained reforms and a transi­tion from aid towards trade and investment in its partnerships with other countries. Meanwhile, he also met with S&P Global Rat­ings representatives to discuss Pakistan’s economic progress and sovereign credit outlook. He reaffirmed commitment to struc­tural reforms, fiscal discipline and sustainable export-led growth. He also outlined Pakistan’s ambi­tion to enter the double-B rating category through sustained eco­nomic improvements.

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