Finance Minister Muhammad Aurangzeb held a high-level meeting with Ajay Banga, President of World Bank, in Washington D.C., where they discussed Pakistan’s post-flood recovery, ongoing economic reforms, and the next phase of development priorities. The engagement was part of the finance minister’s broader participation in the Annual Meetings of International Monetary Fund (IMF) and the World Bank Group.
During the discussion, Aurangzeb recalled the productive engagement between Pakistan’s leadership and the World Bank president during the recent UN General Assembly session. He highlighted the government’s swift response to post-flood challenges and acknowledged the World Bank’s technical and financial support following the damage assessment. The minister also emphasized the importance of leveraging technology and cooperative models to extend support to small farmers, particularly in flood-affected areas.
Aurangzeb endorsed ongoing initiatives for strengthening Pakistan’s tariff structure and expressed appreciation for the World Bank’s technical assistance in shaping the country’s Tariff Policy. He briefed Banga on the government’s collaboration with provincial governments through Memoranda of Understanding to implement the World Bank Country Partnership Framework (CPF). He also requested enhanced support through the IDA window, citing reduced allocations and the pressing need for resource mobilisation for reconstruction.
Both sides discussed adopting a comprehensive reform strategy for Pakistan’s gas and power sectors to address structural inefficiencies and ensure long-term energy security. This conversation came against the backdrop of Pakistan’s wider reform agenda to stabilise the macroeconomic environment and modernise key sectors.
Later, Aurangzeb participated in a global event titled “Financing in a Fragmented World,” where he addressed emerging economic headwinds anticipated for 2025–26. He outlined how rising trade barriers and shifting global energy dynamics were reshaping economic trajectories. Despite tariff pressures in recent months, he noted that the global economy has shown greater resilience than expected earlier in the year.
The finance minister pointed to Pakistan’s active trade and diplomatic engagements as key enablers of economic momentum. These include ongoing negotiations with US authorities, dialogue with Chinese leadership, new security arrangements with Saudi Arabia, and the expansion of CPEC into its second phase. According to him, this evolving geopolitical landscape is crucial to boosting investor confidence and expanding economic opportunities.
Aurangzeb also met with officials from Fitch Ratings, thanking them for upgrading Pakistan’s sovereign rating to B- with a stable outlook. He shared updates on the recent IMF staff-level agreement, trade and tariff reforms, tax and energy sector measures, and plans for state-owned enterprise restructuring. He underscored the government’s strategy to expand financing options through Panda Bonds and other instruments, signaling growing confidence in Pakistan’s fiscal roadmap.
In another significant development, the finance minister met with Adnan Chilwan, Group CEO of Dubai Islamic Bank (DIB), and appreciated the bank’s role as a leading global arranger of sovereign Sukuk for Pakistan. He reiterated the government’s commitment to advancing privatisation initiatives, including the divestment of First Women Bank Limited, and broadening the country’s funding mix across USD, Panda, and Sukuk markets.
Aurangzeb also engaged with the leadership of Sharjah Islamic Bank and Ajman Bank, acknowledging their participation in syndicated financing transactions. He outlined Pakistan’s strategy to issue its inaugural Panda Bond in the Chinese market as part of its diversification plan and encouraged further collaboration with the Debt Management Office for upcoming capital market initiatives.
These series of engagements reflect Pakistan’s focus on deepening global partnerships, accelerating recovery from climate shocks, and advancing key reforms aimed at sustaining economic resilience.
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