FinMin ends Washington visit after key ADCB, IMF–World Bank talks

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb concluded his visit to Washington, DC, with a series of important meetings on the final day of his participation in the Annual Meetings of the International Monetary Fund (IMF) and the World Bank.

The minister met with the senior management of Abu Dhabi Commercial Bank (ADCB) and briefed them on the launch of Pakistan’s Panda Bond and the refreshing of the Global Medium-Term Note (GMTN) programme, said a news release.

He provided an update on the progress of the privatisation programme, expressing optimism about the accelerated privatization of the national carrier.

Aurangzeb informed the ADCB team that the Government of Pakistan was close to achieving financial close on the Reko Diq project and looked forward to the participation of Exim Bank.

He encouraged the Bank to take direct exposure in Pakistan’s financial sector and intermediate trade and investment flows.

In a separate meeting with the senior management of JP Morgan, the Finance Minister shared details of the upcoming inaugural launch of the Green Panda Bond in the Chinese market. He also gave a comprehensive overview of the privatisation programme, including the G2G sale of First Women Bank, recently approved by the Federal Cabinet.

Senator Aurangzeb highlighted growing US company interest in the Reko Diq project and anticipated Exim Bank’s early participation in the syndication process.

He also discussed avenues for digital collaboration between Saudi Arabia and Pakistan through the GO AI Hub and encouraged JP Morgan to explore further areas of partnership.

The Finance Minister also met with Mehmet Simsek, Minister of Treasury and Finance of Türkiye, where both sides reaffirmed the strong bilateral ties and frequent leadership-level engagements between the two countries.

Senator Aurangzeb highlighted Pakistan’s ongoing reforms in taxation, energy, state-owned enterprises (SOEs), privatization, and public finance.

He referred to the World Bank-hosted event showcasing the transformation journey of Pakistan’s Federal Board of Revenue (FBR) and agreed on the importance of enhancing the tax-to-GDP ratio and integrating data across government agencies.

Read: IMF unlocks $1.2b after govt revisits pre-flood pledges

In his meeting with Makhtar Diop, Managing Director of the International Finance Corporation (IFC), Senator Aurangzeb welcomed the IFC’s decision to upgrade Pakistan as a regional hub.

He briefed the MD on progress made on the Reko Diq project and expressed hope that Exim Bank would soon join the financing consortium.

The minister appreciated IFC’s ongoing support in subnational finance and Digital Payment Rights (DPR), as well as its advisory services in the pharmaceutical, electric vehicle (EV), and commodity exchange sectors.

He also welcomed the forthcoming visit of the IFC Managing Director to Pakistan during the Spring Meetings and witnessed the signing of a Swap Agreement between the State Bank of Pakistan (SBP) and IFC.

Senator Aurangzeb also participated in the 15th V20 Ministerial Dialogue on “Cost of Capital, Debt & Growth Pathways.” In his remarks, he highlighted the devastating impact of recurring floods in Pakistan, stressing the government’s commitment to funding rescue and relief operations from its own resources.

He appreciated the support of the CVF-V20 Secretariat in developing Pakistan’s Climate Prosperity Plan (CPP) and noted that funding was available through the Country Partnership Framework (CPF) to operationalize it.

The Minister called for the urgent operationalization of the Loss and Damage Fund and emphasized the need for expedited decision-making within the Green Climate Fund (GCF).

During his visit, the minister also engaged with US-based Pakistani media, where he provided a comprehensive briefing on his weeklong discussions and engagements with international financial institutions, partner countries, and private sector stakeholders.

Read more: IMF projects Pakistan's growth at 3.6%

Senator Muhammad Aurangzeb’s participation in the IMF-World Bank Annual Meetings and his extensive engagements with global financial institutions reaffirm Pakistan’s commitment to economic reform, fiscal responsibility, and international cooperation.

IMF deal

Prime Minister Shehbaz Sharif confirmed a staff-level agreement with the International Monetary Fund for $1.2 billion disbursement and expressed hope that it would be the last such program for Pakistan.

Chairing a cabinet meeting on Thursday, he said the time has come “to free ourselves from the burden of debt”. Hard work is the first condition for national independence and dignity,” said Shehbaz, adding that Pakistan’s economic stability would strengthen its global voice and respect.

The IMF on Wednesday announced the agreement for the release of $1.2 billion next loan tranches after Islamabad, for now, agreed to the old pre-floods budget targets and to publish the governance report before the board meeting.

Upon approval by the board, Pakistan will have access to about $1 billion under the EFF and another $200 million under the RSF, said Iva Petrova. Cumulatively, the IMF will disburse $3.1 billion under the EFF out of the $7 billion deal.

Also read: PM hopes IMF deal Pakistan's final loan agreement

The IMF on Tuesday projected Pakistan's economic growth rate at 3.6% for the current fiscal year, as Finance Minister Muhammad Aurangzeb expressed hope that a staff-level agreement with the lender for two tranches worth $1.2 billion would be reached this week.

The IMF released the World Economic Outlook report from Washington, projecting Pakistan's economic growth rate at 3.6%. But it clarified that Pakistan's economic "projections do not yet reflect the impact of flooding in summer 2025, whose impact is still being assessed".