Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb met with Managing Director of the International Finance Corporation (IFC) Makhtar Diop and his team on the sidelines of the IMF–World Bank Spring Meetings in Washington, D.C.
The minister briefed the delegation on the strong macroeconomic indicators of the country and the recent sovereign credit rating upgrade by Fitch, terming it an external validation of the government’s successful reform initiatives.
The minister appreciated IFC’s support for the Reko Diq project and urged the Corporation to expedite its advisory work on the Karachi airport.
FRLD dialogue
At the high-level dialogue of the Fund for Responding to Loss and Damage (FRLD), he highlighted climate change as an existential threat to Pakistan, recalling the devastating 2022 floods. He stressed the urgent need to operationalize the Loss & Damage Fund with simplicity, agility, and robust accountability mechanisms, urging faster disbursements to vulnerable nations.
Meeting with MIGA VP
In a meeting with Hiroshi Matano, Executive Vice President of the Multilateral Investment Guarantee Agency (MIGA), Aurangzeb appreciated MIGA’s efforts in resolving the Star Hydro power dispute and pledged full support for a potential trade finance facility. He welcomed MIGA’s upcoming mission to Pakistan and expressed hope for finalizing the deal this year.
Meeting with US official
The Finance Minister also held a productive meeting with Thomas Lersten, a senior official from the US State Department, thanking the US for its strong participation in the Minerals Conference in Pakistan. He reiterated Pakistan’s desire for constructive engagement to address tariff issues for which a high-level trade and investment delegation was expected to visit the US.
Aurangzeb also met with senior representatives of the United States Export-Import Bank, led by Jim Barrows and briefed them on Pakistan’s improving macroeconomic fundamentals and fiscal consolidation measures, highlighting the staff-level agreement with the IMF under the EFF and RSF.
Providing them with an update on the Reko Diq project, the Finance Minister called for enhanced EXIM Bank support for US investment in Pakistan, expressing a desire to resolve tariff issues.
Talks with JP Morgan Chase
In talks with JP Morgan Chase, the Finance Minister underscored Pakistan’s stable economic trajectory and plans to diversify markets. He reiterated Pakistan’s intent to return to international capital markets through an inaugural Panda Bond issuance.
IMF panel discussion
While speaking at an IMF panel discussion on “Navigating an Uncertain World,” Minister Aurangzeb emphasized the importance of promoting regional trade amidst global uncertainty. He advocated for sector and market diversification and a shift from import substitution to export-led growth, identifying IT sector as a key driver.
Later, the Finance Minister met with Dev Jagadesan, Acting CEO of the US International Development Finance Corporation (DFC), to discuss project pipelines, including Reko Diq, and potential US-Pakistan cooperation.
Meeting with UK minister
The Minister also met with Baroness Chapman, Minister of State for International Development of the United Kingdom and thanked her for the UK’s longstanding partnership with Pakistan.
He briefed her on the World Bank’s 10-year Country Partnership Framework (CPF), focused on population and climate resilience. He emphasized the role of technology in improving tax administration and appreciated REMIT initiative for mapping development assistance, the press release added.
Climate change existential threat
Aurangzeb on Friday singled out climate change as an existential threat facing Pakistan.
According to press release issued by finance ministry in Islamabad, the minister made this statement while addressing the High-Level Dialogue of the Fund for Responding to Loss and Damage (FRLD) on the sidelines of the 2025 WBG/IMF Spring Meetings in Washington.
The Finance Minister said that Pakistan was the biggest proponent of the Loss & Damage Fund set up at COP28 through an agreement by 198 countries to assist particularly vulnerable developing countries in responding to economic and non-economic loss and damage associated with the adverse effects of climate change, including extreme weather events and slow onset events.
During his address, Aurangzeb underlined the urgency of operationalizing the Fund and the importance of integrity of the whole process with adequate checks and balances.
Emphasizing that simplicity and agility should be the guiding principles, the Finance Minister urged the need for speedy disbursements under the Fund unlike the experience of lease developed countries (LDCs) and the most vulnerable countries with the existing climate funds.