KARACHI: Finance Minister Muhammad Aurangzeb highlighted key economic reforms undertaken by Islamabad and the potential for investment in the South Asian country, in his meetings with representatives of the World Bank and other international financial institutions in Washington on Tuesday, the finance ministry said.
Aurangzeb arrived in Washington on Sunday to participate in spring meetings organized by the IMF and World Bank. His tour is an important one for the South Asian country as an ongoing nine-month, $3 billion loan program with the IMF designed to tackle a balance-of-payments crisis, is set to expire this month.
With the final $1.1 billion tranche of that deal likely to be approved later this month, Pakistan has begun negotiations for a new multi-year IMF loan program worth “billions” of dollars, according to the finance ministry.
“The minister highlighted Pakistan’s progress under the 9-month [Stand-by Arrangement] SBA program and ongoing reforms in priority areas of taxation, energy and privatization,” the Pakistani finance ministry said in a statement after Aurangzeb met Ajay Banga, the president of the World Bank Group, on Tuesday.
“Both sides agreed on the need for a rolling Country Framework Plan for 10 years.”
The statement said the World Bank president assured his “full support” for Pakistan’s reforms and digitalization programs to stabilize the economy and enhance revenues.
In an interview on Monday, Aurangzeb had said Pakistan would seek at least a three-year IMF program and plans to continue with necessary policy reforms to rein in deficits, build up reserves and manage soaring debt servicing.
Aurangzeb also separately met Masatsugu Asakawa, the president of the Asian Development Bank (ADB) in Washington on Tuesday.
“Discussions focused on further strengthening Pakistan’s partnership with ADB, protecting country envelope of concessional financing and future project pipeline,” the finance ministry said.
Aurangzeb met Hela Cheikhrouhou, the regional vice president for MCT at the International Finance Corporation (IFC) to brief her on the government’s structural reform agenda on taxation, privatization and energy.
“He encouraged IFC to scale up its engagement and work with Pakistan in the priority areas of securitization of remittances, mining, airport management and capacity building,” the statement said.
The Pakistani finance minister also met Scott Nathan, CEO of the US International Development Finance Corporation (DFC).
“The Minister highlighted the government’s commitment to attract investments across various sectors in Pakistan, including priority areas of agriculture, IT, extractive industry and renewable energy,” the finance ministry said.
He hoped the DFC would expand its portfolio in Pakistan following the resolution of outstanding issues and tap “significant investment opportunities” by leveraging private sector investments and public-private partnerships, the statement added.
The Pakistani minister separately met Saudi Arabia’s Finance Minister Mohammed Al-Jadaan during which he appreciated the Kingdom for its “steadfast financial support” to Pakistan as it faces an economic crisis.
“Both sides exchanged views on deepening economic and investment relations between the two countries,” the finance ministry said. “They also explored new avenues for collaboration to further strengthen trade and investment ties in diverse areas.”
Aurangzeb then attended the G-24 Finance Ministers and Central Bank Governors’ Meeting on the sidelines of the Spring meetings in Washington D.C. and participated in discussions centered around sustainable economic growth and financial stability.
“The Minister highlighted that the government undertook difficult but necessary reforms to move the economy in the right direction,” the statement said.
Aurangzeb was referring to several IMF-mandated reforms Pakistan implemented after its loan program was approved by the international lender. These included budget adjustments, increasing interest rates, and higher energy prices.
Aurangzeb also separately met Turkish Finance Minister Mehmet Şimşek during which the Pakistani minister acknowledged that the current bilateral trade between Pakistan and Türkiye “is not commensurate with existing potential.”
“Both sides agreed on the need to deepen cooperation by giving a fresh impetus to bilateral trade and investment and benefit from Turkiye’s experience in power generation and distribution,” the statement added.
Reforms on top of agenda as Pakistan finance chief meets global financial institutions’ representatives
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Reforms on top of agenda as Pakistan finance chief meets global financial institutions’ representatives
- Finance minister is in Washington for spring meetings organized by IMF, World Bank
- Aurangzeb meets World Bank president, finance ministers of Saudi Arabia and Turkiye
Pakistan says it backs Gaza peace plan, hopes next phase leads to Palestinian state
- Foreign Office says it is not concerned about who joins or stays out of the Abraham Accords
- Pakistan reaffirms rejection of Israel’s recognition of Somaliland, warns of regional instability
ISLAMABAD: Pakistan’s Foreign Office said on Thursday it supported the Gaza peace plan endorsed by the United Nations Security Council, expressing hope its next phase would stabilize the situation in the war-ravaged territory, scale up humanitarian assistance and lead to an independent Palestinian state.
The United States said on Wednesday it was moving into the next phase of a Gaza ceasefire plan. President Donald Trump’s Middle East envoy Steve Witkoff said in a post on X that the second phase will establish “a transitional technocratic Palestinian administration in Gaza” and mark the beginning of “the full demilitarization and reconstruction of Gaza, primarily the disarmament of all unauthorized personnel.”
Commenting on the development, Foreign Office Spokesperson Tahir Andrabi said Pakistan had taken note of the announcement.
“We have seen this social media post about the next phase of the ceasefire agreement in Gaza, and we express the hope that these steps will lead to further stabilization of the situation, and upscaling the humanitarian assistance and end of the sacrifices of the people,” he said while addressing his weekly news conference.
Andrabi said Pakistan had been engaged in the Gaza peace effort as part of a group of Arab and Islamic countries since the initiative was presented by the US president and supported both the plan and the UN Security Council resolution endorsing it.
“We also hope that these efforts will lead to a credible time bound, political process consistent with international legitimacy and relevant UN resolutions to establish an independent, sovereign, contiguous state of Palestine, based on pre-1967 borders with East Jerusalem as its capital,” he added.
Asked about Pakistan’s position on the Abraham Accords, a series of US-brokered agreements normalizing relations between Israel and several Arab states, Andrabi said Islamabad’s stance remained unchanged.
“Our position with respect to it is that there are certain benchmarks that have to be achieved ... And [these relate do] a viable, contiguous state of Palestine, with East Jerusalem as its capital.”
He said Pakistan did not judge other countries’ choices on the accords.
“We are not concerned about who does or who does not join the Abraham Accords,” he said.
SOMALILAND ISSUE
Earlier in his opening remarks, Andrabi reiterated Pakistan’s rejection of Israel’s recognition of Somaliland, a self-declared breakaway region of Somalia, calling the move illegal and warning it could destabilize the Horn of Africa and Red Sea region.
Somaliland declared independence from Somalia in 1991 but is not recognized by the United Nations or the African Union.
Israel’s recent steps to recognize the territory have drawn criticism from Somalia and several Muslim-majority countries.
Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar raised the issue during the 22nd Extraordinary Session of the Organization of Islamic Cooperation Council of Foreign Ministers held in Jeddah on Jan. 10.
“In his address, the DPM-FM strongly condemned the illegal and unlawful recognition by Israel of the Somaliland region, as well as subsequent unwarranted and highly provocative visits of Israeli officials to the territory,” the Foreign Office spokesman said.
“He termed such acts as political aggression and a direct assault on Somalia’s internationally recognized borders, setting a perilous precedent and threatening peace and security in the Horn of Africa, the Red Sea region, and beyond.”
Andrabi said Dar also addressed the Palestinian issue during the session, rejecting proposals for the displacement of Palestinians and reaffirming Pakistan’s long-standing support for a two-state solution.
