IMF managing director meets Aurangzeb, hails Pakistan’s reform progress, macroeconomic stability

She met with Finance Minister Muhammad Aurangzeb on the sidelines of the IMF–World Bank Spring Meetings 2026 in Washington, where the finance czar had arrived on Monday. During his visit, Aurangzeb was expected to participate in over 50 high-level engagements from April 13 to 18.

“Great to see Aurangzeb at the IMF Meetings!” Georgieva said on X early on Thursday.

“Strong programme implementation has helped Pakistan maintain macroeconomic stability and build confidence,” the IMF official said.

She emphasised that “sound policies and deeper structural reforms remain key to sustaining growth and raising welfare for all Pakistanis”.

In its statement on the interaction, the finance ministry recalled Georgieva’s remarks, noting that she “appreciated Pakistan’s continued progress on economic reforms”.

“The remarks reflect growing international recognition of Pakistan’s reform efforts and its commitment to maintaining economic stability through prudent policymaking,” the ministry noted.

A day ago, Aurangzeb also met the IMF’s First Deputy Managing Director, Dan Katz, and briefed him on the immediate impact of the ongoing Middle East conflict on Pakistan’s economy and outlined the government’s policy response.

The finance minister also held a “constructive meeting” with Fitch Ratings on the sidelines of the World Bank–IMF Spring Meetings, his ministry said.

On Monday, Fitch Ratings affirmed Pakistan’s long-term foreign currency issuer default rating (IDR) at “B-” with a “stable outlook”.

Aurangzeb appreciated Fitch’s “continued engagement with and assessment of Pakistan’s credit profile, and thanked the agency for reaffirming Pakistan’s B- credit rating”, the finance ministry said.

The minister highlighted that a Staff Level Agreement had been reached with the IMF for the third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF).

Aurangzeb further noted that Pakistan has secured external financing arrangements to meet its FY2026 obligations.

He elaborated on the government’s strategy to maintain a strong presence in international capital markets through diversified instruments, including Panda Bonds, Eurobonds, international Sukuk, and ESG-linked bonds.

The finance minister also held a meeting with Asian Development Bank (ADB) President Masato Kanda on the sidelines of the World Bank–IMF Spring Meetings.

Aurangzeb thanked Kanda for ADB’s support in providing credit enhancement for the issuance of Pakistan’s inaugural Panda Bond, the finance ministry said.

He highlighted the recent signing of the Country Partnership Strategy (CPS) as an important milestone in advancing bilateral cooperation between Pakistan and the ADB.

Aurangzeb briefed the ADB president on the successful conclusion of the IMF SLA and expressed hope for a positive outcome at the Fund’s Executive Board.

The finance minister “characterised the ongoing crisis as a significant supply shock and outlined Pakistan’s policy response to address its first-order effects, including measures related to fuel availability, pricing, logistics, targeted subsidies, and demand-side management”, the ministry noted.

“He also highlighted ongoing assessments of second and third-order impacts in coordination with the State Bank of Pakistan (SBP).”

During the meeting, Aurangeb took note of Kanda’s concerns regarding disruptions to fertiliser supply chains, potential implications for agricultural output, and volatility in financial markets.

Aurangzeb, on behalf of Prime Minister Shehbaz Sharif, extended an invitation to the ADB president to visit Pakistan.

Meanwhile, on the sidelines of the launch of the Borrowers’ Platform in Washington, the finance minister met with United Nations Secretary-General António Guterres.

According to the finance ministry, Aurangzeb appreciated the UN chief’s participation in the launch event of the platform aimed at strengthening debt sustainability, transparency and peer learning among borrowing nations.

Aurangzeb thanked Guterres for his support in the establishment of the “important platform”, the ministry statement added.

“During the meeting, the two sides discussed the global economic implications of the ongoing situation in the Middle East, particularly its impact on food and energy security in developing countries.”

The UN chief “lauded Pakistan’s role in facilitating peace and stability in the region and beyond, and expressed confidence in its continued constructive engagement on the global stage”.

Separately, the finance minister met with the senior leadership of Franklin Templeton to discuss privatisation and capital markets, the ministry said.

Aurangzeb updated the delegation on the government’s ongoing privatisation programme, noting that 28–29 state-owned enterprises (SOEs) have been formally handed over to the Privatisation Commission.

He also discussed the outsourcing of airports, including Islamabad, Karachi and Sialkot, as well as the privatisation of electricity distribution companies.

In his meeting with representatives of JPMorgan Chase, Aurangzeb signalled that Pakistan “is preparing to re-enter international capital markets after an absence of approximately four years”, his ministry said.

The finance minister expressed appreciation for the financial support extended by the Kingdom of Saudi Arabia.

“He assured the JP Morgan team that the various financing proposals and market options presented during the discussion would be carefully reviewed,” the ministry statement read.

The finance czar also addressed the Citi Macro Forum, which was attended by institutional investors.

Describing the Middle East crisis as one of the largest supply shocks in recent history, Aurangzeb outlined the government’s response across three stages, including measures to address first-order effects and ongoing coordination with the SBP on second and third-order impacts.

The minister informed participants that Pakistan’s inaugural Panda Bond issuance is targeted for May, according to the ministry.

“He also flagged emerging opportunities, including a surge in transit volumes at Karachi Port and the potential for renewed momentum in developing Gwadar as a strategic trade corridor.”

In its official statement on Aurangzeb attending the launch of Borrowers’ Platform, the finance ministry said the finance czar noted that the platform “addresses a long-standing gap, as borrowing countries have lacked a dedicated forum to share experiences, identify emerging risks, and bring coherence to their collective perspectives”.

Aurangzeb “underscored that a large number of developing countries remain in acute debt distress, facing elevated borrowing costs and tightening global financial conditions that are constraining their ability to invest in growth and sustainable development”, the statement said.

He noted that while domestic reforms remain essential and are being actively pursued, systemic constraints within the global financial architecture continue to limit the policy space available to borrowing nations.

The finance minister clarified that the Borrowers’ Platform was “not intended as a negotiating bloc, but rather as a voluntary, Member State-led initiative focused on peer learning, experience-sharing, and amplifying the voice of borrowing countries in the global financial discourse”.