Pakistan has called for a stronger Borrowers’ Forum, greater representation for developing economies and more responsive international financial institutions as countries across the Global South seek improved access to development financing. Finance Minister Senator Muhammad Aurangzeb raised these priorities during a meeting with United Nations Deputy Secretary-General Amina J Mohammed on the sidelines of the 2026 World Bank Group and International Monetary Fund Annual Meetings in Bangkok, Thailand. According to an official press release, the discussions covered debt management, climate resilience, development funding and ways to improve cooperation among borrowing countries.
Aurangzeb emphasised the need to strengthen the Borrowers’ Forum through peer learning, continuity in governance and an effective virtual Secretariat. The forum provides a platform for borrowing countries to exchange experiences and discuss common challenges related to sovereign debt and development financing. Stronger cooperation could help participating countries share approaches to debt management, learn from one another’s policy experiences and coordinate their engagement with international financial institutions. Continuity in governance and an effective administrative structure were highlighted as important elements for maintaining the forum’s work and ensuring that discussions lead to sustained engagement.
The finance minister and the United Nations deputy secretary-general also stressed the importance of adequate financing for the Sustainable Development Goals. These global objectives include reducing poverty, improving access to essential services, strengthening social protection and supporting decent employment. Developing countries often face competing demands on public finances, including debt servicing, infrastructure investment, healthcare, education and climate-related spending. Greater access to development resources could help governments address these needs, although the availability and terms of financing remain important considerations for countries managing fiscal constraints.
Climate finance was another major area of discussion. Pakistan highlighted gaps in funding for climate-related priorities and the need to make financing mechanisms easier for eligible countries to access. Complicated application processes, limited institutional capacity and difficulties preparing projects that meet investor requirements can delay the movement of funds towards projects that need support. Improving access procedures and strengthening the capacity of public institutions to prepare bankable projects could help countries present investment proposals that are financially structured and capable of attracting funding. The meeting did not announce a new climate financing package or specify additional funds committed to Pakistan.
The discussions also highlighted the importance of local currency financing as a way to reduce exchange-rate risks. When governments borrow in foreign currencies but collect most of their revenue in domestic currency, depreciation can increase the local-currency cost of debt repayment. Financing in local currency can reduce this particular exposure, depending on the instrument, its maturity and the structure of the borrowing arrangement. Aurangzeb also pointed to the importance of accountable domestic policymaking, indicating that international financing needs to be accompanied by sound policy decisions and responsible management of public resources.
Greater representation for the Global South formed part of the broader discussion about the role of international financial institutions. Developing economies face different financing needs and economic conditions, and their participation in global financial decision-making can influence how development priorities are recognised. A stronger collective voice could give borrowing countries more opportunities to communicate shared concerns about debt, climate resilience and access to concessional resources. However, any changes to institutional representation or financing arrangements would depend on the relevant organisations’ governance structures and the decisions of their members.
The meeting reflects Pakistan’s efforts to engage international partners on development financing while addressing debt vulnerabilities and climate-related investment needs. Strengthening the Borrowers’ Forum, improving access to climate funds and expanding local currency financing are among the approaches discussed to support countries pursuing long-term development objectives. The focus on poverty reduction, social protection and decent jobs also underscores the need to connect financing decisions with public welfare and economic opportunities. No specific new funding commitment, formal governance change or implementation timeline for the proposals was announced following the meeting.
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