Pakistan, IMF reaffirm reform drive as finance minister meets global lenders in Washington

Pakistan's Finance Minister, Muhammad Aurangzeb (fourth, front row on left) in conversation with Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, and his team in Washington DC, US, on October 13, 2025. (Government of Pakistan)
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Updated 14 October 2025
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Pakistan, IMF reaffirm reform drive as finance minister meets global lenders in Washington

  • Finance minister holds talks with IMF, World Bank, IFC, IsDB and US business leaders
  • Meetings underline Islamabad’s bid to sustain IMF-backed recovery, attract investment

KARACHI: Pakistan’s Finance Minister Muhammad Aurangzeb this week met International Monetary Fund (IMF) Middle East and Central Asia Director Jihad Azour to reaffirm Islamabad’s commitment to structural reforms and macroeconomic stability under an ongoing $7 billion IMF bailout program.

The engagement came on the opening day of Aurangzeb’s official visit to Washington DC, where he is attending the Annual Meetings of the IMF and World Bank Group and holding high-level discussions aimed at bolstering investor confidence and development cooperation.

“Both sides exchanged views on Pakistan’s reform agenda and reaffirmed their shared commitment to sustaining the current momentum of reforms,” the Finance Division said in a statement after Aurangzeb met Azour, adding that the meeting reviewed progress under the Second Review of the Extended Fund Facility (EFF) and “acknowledged the importance of maintaining macroeconomic discipline.”

The talks took place as Pakistan moves through the mid-point of its 37-month IMF arrangement, which seeks to strengthen the country’s fiscal position, curb inflation and stabilize reserves after years of economic turbulence and climate-related shocks. The IMF currently projects Pakistan’s GDP to expand 3.6 percent in FY 2026, while the World Bank expects 2.6 percent.

In a separate session, Aurangzeb attended the Commonwealth Finance Ministers’ Meeting, where he emphasized prioritizing “concrete actions to advance a resilient and prosperous Commonwealth.” 

He voiced support for the operationalization of the Commonwealth Infrastructure and Financial Resilience Hub and its Technical Assistance Fund, highlighting the urgency of climate financing and activation of the global Loss and Damage Fund for vulnerable economies.

Separately, Aurangzeb met World Bank Senior Managing Director Axel van Trotsenburg, thanking the institution for its “continued commitment to Pakistan’s national development agenda.” He noted that the climate crisis remains an “existential challenge for Pakistan,” citing the devastation of recent floods and their impact on agriculture and GDP growth. 

Both sides agreed on the need to mobilize additional resources for adaptation and future disaster response.

The finance minister also held detailed discussions with International Finance Corporation (IFC) Regional Vice President Riccardo Puliti on scaling up private-sector investment under the 10-year Country Partnership Framework. They agreed to expedite financial closure of the IFC-backed Reko Diq mining project in Balochistan province, one of Pakistan’s largest planned foreign-investment ventures. Aurangzeb welcomed IFC’s decision to open a new regional office in Islamabad to deepen collaboration.

At the Islamic Development Bank (IsDB), Aurangzeb met President Dr. Muhammad Sulaiman Al-Jasser and reviewed Pakistan’s active portfolio, thanking the bank for approving financing for two sections of the M-6 motorway. The two sides agreed to accelerate project implementation and craft a new Country Engagement Framework.

The minister also briefed the US-Pakistan Business Council and held talks with Citi Bank executives, stressing Pakistan’s “stabilizing macroeconomic outlook” and its emergence as a regional hub for digital innovation and financial services. 

At both engagements, Aurangzeb highlighted the July 2025 US tariff deal that reduced duties on Pakistani exports to 19 percent, the lowest in South Asia, and pledged continued facilitation for foreign investors in mining, agriculture, IT, and pharmaceuticals.

In addition, Aurangzeb met US Treasury Assistant Secretary Robert Kaproth and Counselor Jonathan Greenstein, welcoming “successful negotiations with the US administration leading to a tariff deal” and briefing them on Pakistan’s new legislation governing virtual assets. He invited US firms to explore opportunities in Pakistan’s oil, gas, mineral and IT sectors.

Aurangzeb’s packed Washington schedule also included meetings with media outlets, including Reuters and the Associated Press, and a dinner hosted by Pakistan’s ambassador to Washington, Rizwan Saeed Sheikh.


Pakistan joins regional talks on Afghanistan in Iran as Kabul stays away

Updated 15 December 2025
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Pakistan joins regional talks on Afghanistan in Iran as Kabul stays away

  • China, Pakistan, Pakistan, Tajikistan, Uzbekistan, Turkmenistan all joined talks organized by Iran, as did Russia
  • Afghanistan was invited but decided not to attend, Taliban-led government was tight-lipped on the reasons

TEHRAN, Iran: Afghanistan’s neighbors met in Iran and agreed to deepen regional coordination to address political, economic and security challenges, as well as calling for sanctions on Afghanistan to be lifted. 

The only absent party? Afghanistan itself.

China, Pakistan, Pakistan, Tajikistan, Uzbekistan and Turkmenistan all joined the talks organized by Iran, as did Russia, according to a statement released after the meeting on Sunday.

Afghanistan was invited but decided not to attend. Its Taliban-led government was tight-lipped on the reasons, with the foreign ministry saying only that it would not participate because Afghanistan “currently maintains active engagement with regional countries through existing regional organizations and formats, and has made good progress in this regard.”

The statement from the talks in Iran stressed the importance of maintaining economic and trade ties with Afghanistan to improve living conditions and called for the country’s integration into regional political and economic processes.

The Taliban were isolated after they retook power in Afghanistan in August 2021, but in the past year, they have developed diplomatic ties. They now raise several billion dollars every year in tax revenues to keep the lights on.

However, Afghanistan is still struggling economically. Millions rely on aid for survival, and the struggling economy has been further impacted by the international community not recognizing the Taliban government’s seizure of power in the wake of the chaotic withdrawal of US-led troops in 2021. Natural disasters and the flow of Afghans fleeing Pakistan under pressure to return home have underlined Afghanistan’s reliance on foreign aid to meet essential needs.

The countries at the talks also voiced security concerns and pledged cooperation in combating terrorism, drug trafficking and human smuggling, while opposing any foreign military presence in Afghanistan. They underscored the responsibility of the international community to lift sanctions and release Afghanistan’s frozen assets, and urged international organizations to support the dignified return of Afghan refugees from neighboring countries.

The participants backed efforts to reduce tensions between Afghanistan and Pakistan, which have been particularly strained, with border clashes between the two sides killing dozens of civilians, soldiers and suspected militants and wounding hundreds more.

The violence followed explosions in Kabul on Oct. 9 that Afghan authorities blamed on Pakistan. A Qatar-mediated ceasefire has largely held since October, although there have been limited border clashes. The two sides failed to reach an overall agreement in November despite three rounds of peace talks.

Asif Durrani, Pakistan’s former special representative for Afghanistan, said the Taliban government’s decision to skip the meeting reflected a “lack of political maturity.” 

Writing on X, Durrani said the move reinforced concerns that the Taliban were unwilling to negotiate, instead adopting an “I don’t accept” stance that he said would do little to resolve serious regional problems.

Mohammad Sadiq, the current Pakistani special representative for Afghanistan who attended the talks, wrote on X that the Afghan people had already suffered enough and deserved better.

Only an Afghanistan that does not harbor militants would inspire confidence among neighboring and regional countries to engage meaningfully with Kabul and help unlock the country’s economic and connectivity potential, he wrote.

Participants agreed to hold the next meeting of foreign ministers of Afghanistan’s neighboring countries as soon as possible in Ashgabat, Turkmenistan, and welcomed Pakistan’s offer to host the next round of special envoys’ talks in Islamabad in March.

Iran’s foreign ministry spokesman, Esmail Baghaei, on Sunday said that the meeting had not been held for about two years and marked the first such gathering attended by special envoys on Afghanistan from neighboring countries as well as Russia. Russia and Uzbekistan sent the special envoys of their presidents, while Pakistan was represented by a delegate from the prime minister’s office.

Landlocked Afghanistan is sandwiched between the Middle East, Central Asia, and South Asia, making it strategically located for energy-rich and energy-hungry nations.