Pakistan’s Finance Minister Muhammad Aurangzeb has expressed optimism about improving trade relations with the United States during his ongoing visit to Washington D.C. for the annual spring meetings of the International Monetary Fund (IMF) and the World Bank. Engaged in a series of high-level meetings, Aurangzeb focused on presenting Pakistan’s economic reforms, fiscal stability, and investment opportunities while highlighting the importance of international cooperation in navigating global economic challenges.
On the second day of his visit, Aurangzeb began his agenda by participating in the G-24 Finance Ministers and Central Bank Governors’ Meeting. As the Second Vice Chair of the G-24, he delivered a comprehensive statement underscoring Pakistan’s resilient banking system and ongoing structural reforms, which have played a key role in ensuring the country’s macroeconomic stability. He also spoke on the pressing need to continue implementing these reforms despite external challenges such as geopolitical tensions, global trade fragmentation, and rising protectionism.
In his address, the Finance Minister stressed the significance of enhancing regional trade corridors and fostering South-South cooperation to boost investment and strengthen trade relations. He noted that such initiatives are essential for Pakistan to maintain growth and stability in an increasingly uncertain global economic environment.
Aurangzeb also took part in an IMF-hosted panel discussion on “Revenue Mobilization in the Medium Term,” where he outlined Pakistan’s efforts to widen its tax base. The country is focusing on ensuring that sectors such as agriculture, real estate, and retail contribute their fair share to the national economy. He emphasized key reforms within the Federal Board of Revenue (FBR), including the integration of advanced technology, reducing the taxpayer-collector interface, and improving enforcement and compliance. Additionally, Aurangzeb highlighted the use of artificial intelligence (AI) for more efficient and customized audits.
Later, during a fireside chat at the Atlantic Council’s GeoEconomics Center, the Finance Minister discussed “Challenges and Opportunities for the Pakistani Economy through 2025 and Beyond.” He elaborated on the government’s ongoing reform agenda, particularly the digitalization of the FBR, enhanced provincial involvement in tax collection, and the introduction of provincial legislation for the Agriculture Income Tax. Aurangzeb emphasized that by rationalizing federal spending and collaborating with provincial governments, Pakistan is working toward building a sustainable economic future.
In addition to fiscal policies, Aurangzeb addressed key environmental and demographic challenges. He noted the World Bank’s approval of a 10-year Country Partnership Framework (CPF) for Pakistan, which aims to guide future development in the country. The minister reaffirmed Pakistan’s commitment to launching the Panda Bond and highlighted the government’s efforts in developing a green taxonomy framework. This initiative will pave the way for issuing green bonds and green sukuks, with proceeds linked to Sustainable Development Goals (SDG)-aligned projects.
The Finance Minister also used his time in Washington to emphasize Pakistan’s desire for improved trade relations with the United States. Aurangzeb mentioned that a high-level delegation from Pakistan is expected to visit the US soon to engage in discussions aimed at addressing trade imbalances and fostering constructive dialogue. He expressed confidence that a mutually beneficial trade relationship could be established.
During his visit, Aurangzeb met with various institutional investors and provided updates on Pakistan’s economic outlook, including recent fiscal and monetary developments. He also shared positive news regarding Pakistan’s credit rating upgrade from Fitch, which has opened the door for the country’s return to international financial markets.
Moreover, Aurangzeb met with Martin Raiser, the World Bank’s Vice President for South Asia, where they discussed the operationalization of the 10-year CPF, the importance of increasing private sector investment, and the challenges related to project implementation.
In addition, he met with the Deutsche Bank team, led by Myriam Ouazzani, and emphasized Pakistan’s interest in returning to the financial markets through initiatives such as Panda and ESG bonds, in line with improved macroeconomic stability. He also briefed the Moody’s commercial team on Pakistan’s fiscal surpluses, declining inflation, stable exchange rates, and foreign reserves, which are all key indicators of the country’s strengthening economic position.
Through these discussions, Finance Minister Aurangzeb underscored Pakistan’s commitment to reforms and international collaboration, setting the stage for a more stable and prosperous economic future.