Pakistan has asked international financial institutions to adjust lending terms to match its upgraded credit profile and returning access to global debt markets. Muhammad Aurangzeb, finance minister of Pakistan, made the case during meetings with global lenders on the sidelines of the World Bank Group and International Monetary Fund (IMF) annual meetings in Bangkok.
The finance minister met leadership from the IMF, the Multilateral Investment Guarantee Agency (MIGA), and the Asian Infrastructure Investment Bank (AIIB). In talks with MIGA Managing Director Tsutomu Yamamoto, Aurangzeb said financing costs should reflect Pakistan's improved sovereign credit standing. He welcomed MIGA's revised pricing while both sides reviewed a pending hydropower case before the United Kingdom Supreme Court, where further steps await a final ruling.
Discussions on Reforms and Debt Stability
In a separate session with IMF Deputy Managing Director Nigel Clarke, Muhammad Aurangzeb, finance minister, outlined indicators of stabilizing accounts. He pointed to three consecutive years of primary fiscal surpluses, growing foreign exchange reserves covering three months of imports, and a declining ratio of debt to gross domestic product (GDP). Clarke stressed that Pakistan must build adequate reserve cushions and raise domestic revenue to finance public services, schools, and hospitals.
Speaking at a regional meeting alongside the IMF managing director, Aurangzeb noted that Pakistan's overall fiscal deficit had fallen to 2.6 percent of GDP from a previous peak of 12.5 percent. He also cited economic growth of 3.7 percent, a September Eurobond issuance, and an October 7 staff-level pact with the Fund. Aurangzeb said targeted and budget-neutral subsidies remain necessary to shield low-income households without breaking fiscal limits.
Infrastructure and Development Priorities
Talks with AIIB President Zou Jiayi centered on funding energy security and transport networks. Aurangzeb urged the development bank to back power transmission upgrades and modernization work on the Karachi-Rohri section of the Main Line-1 (ML-1) railway. The AIIB plans to evaluate a transmission project before year-end, while officials also discussed possible co-financing with the Asian Development Bank (ADB) and emergency support to handle food and energy pressures.
Addressing an investor panel on sovereign risk, Aurangzeb reported that domestic tax collections grew by 40 percent across two years. However, he acknowledged that broadening the tax net and overcoming resistance to structural reforms remain difficult challenges for economic managers.
Aasan alfaaz mein
Wazir-e-khazana Muhammad Aurangzeb ne aalmi idaron se sasti sharait par qarzay maangay hain. Unhon ne bataya ke Pakistan ke maali halaat behtar huay hain aur foreign exchange reserves mazboot hain. AIIB se bijli aur train ke mansoobon ke liye maali imdad par bhi baat hui hai. Is iqdaam ka maqsad mulk par qarz ka bojh kam karna aur taraqqiati kaamon ko aagay barhana hai.
