Finance Minister discusses infrastructure financing, capital market support with AIIB President

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, met with IMF Deputy Managing Director Nigel Clarke on the sidelines of the World Bank Group–IMF Annual Meetings 2026 in Bangkok, Thailand, to discuss Pakistan’s economic progress and reform priorities, reported 24NewsHD TV Channel.  

The Finance Minister appreciated the Fund’s partnership and emphasized strong political ownership and sustained implementation of reforms. He highlighted Pakistan’s return to international capital markets and robust investor participation. He outlined targeted fuel subsidies to protect vulnerable groups and preserve social cohesion.

The Finance Minister further highlighted stronger reserves, three consecutive years of primary surpluses and a declining debt-to-GDP ratio. Discussions covered sustainable growth, policy consistency and safeguarding health and education spending alongside fiscal discipline.

The Finance Minister also noted Mr. Clarke’s emphasis on adequate reserve buffers and stronger revenues to support investment in human capital, infrastructure and public services.

Earlier, Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, met with AIIB President Ms. Zou Jiayi on the sidelines of the World Bank Group–IMF Annual Meetings 2026 in Bangkok, Thailand, to discuss infrastructure financing and economic resilience.

He identified power transmission and railway modernization as priorities, with AIIB targeting transmission project approval before year-end. 

Discussions also covered the ML-1’s Karachi–Rohri section and possible cofinancing with ADB or parallel financing for other sections. The Finance Minister emphasized a multi-year lending programme, timely project execution and greater private sector participation through public-private partnerships. The meeting also explored emergency budget support to address energy and food security pressures, and potential climate-focused policy financing.

The Finance Minister appreciated AIIB’s Panda bond guarantee support and outlined financing diversification, longer maturities, and reduced rollover risks. He also thanked AIIB for expressing readiness to support future capital market issuances and explore technical cooperation on Eurobond tokenization.

Earlier, Senator Aurangzeb, briefed investors on Pakistan’s economic progress at Standard Chartered Bank’s Sovereign Investor Roundtable on the sidelines of the World Bank Group–IMF Annual Meetings 2026 in Bangkok, Thailand.

The Finance Minister highlighted three consecutive years of primary surpluses, a fiscal deficit at a 22-year low and sovereign rating upgrades. He outlined financing diversification through Sukuk, Panda bonds and a proposed rupee-denominated, dollar-settled international bond, emphasizing lower borrowing costs, longer debt maturities and reduced rollover risks.

He stressed sustained structural reforms, fiscal discipline, stronger tax enforcement and investment- and export-led growth beyond the IMF programme. Discussions covered stronger reserves, inflation and the external outlook, energy security, targeted relief and climate financing.

The Finance Minister reaffirmed the government’s commitment to sustaining reforms and further strengthening Pakistan’s sovereign credit standing.