WASHINGTON: Finance Minister Muhammad Aurangzeb praised the partnership between the Asian Development Bank (ADB) and Pakistan in supporting the country’s development agenda during a meeting with ADB President Masatsugu Asakawa in Washington.
Aurangzeb welcomed the launch of the new ADB office in Islamabad and expressed hope for the swift finalization of the ADB’s Country Partnership Framework. He commended the bank for completing the Capital Adequacy Framework and for exempting Pakistan from surcharges beyond exposure limits for the next three years.
The minister also appreciated the ADB’s support for a Policy-Based Loan of USD 500 million for the Climate & Disaster Resilience Enhancement Program, which is set for consideration by the ADB Board on the 29th of this month.
Both sides emphasized the importance of domestic revenue mobilization, regional cooperation, and the timely completion of the new ADB office in Islamabad.
Meetings with S&P Global and Other Institutions
On Friday, Aurangzeb met with representatives of S&P Global in Washington DC, where he provided updates on macroeconomic stabilization, fiscal consolidation measures, and improvements in external account developments. He noted a decline in government financing costs, which would help reduce debt servicing expenses. The minister expressed optimism that S&P Global would soon upgrade the country’s credit rating.
Aurangzeb also held discussions with Deemah AlYahya, Secretary-General of the Digital Cooperation Organisation (DCO), highlighting the potential of Pakistan’s IT sector.
During a meeting with Dr. Adnan Chilwan, Group CEO of Dubai Islamic Bank, Aurangzeb thanked the bank for its timely support in bridging the financing gap and appreciated plans to expand operations in Pakistan. He mentioned that Pakistan’s credit rating had recently been upgraded by Fitch and Moody’s, indicating the government’s intent to tap into International Capital Markets (ICM) through an inaugural Panda Bond to diversify its financing sources. Various lending options offered by Dubai Islamic Bank to the government were also discussed, with both sides expressing interest in further collaboration.
Discussion with Moody’s
Aurangzeb expressed appreciation for Moody’s recent upgrade of Pakistan’s credit rating to Caa2 during a meeting with representatives from the agency. He informed them that senior officials from the Ministry of Finance and the Central Bank regularly engage with rating agencies. The meeting included a comprehensive briefing on debt sustainability, monetary policy, exposure to external vulnerabilities, foreign exchange reserves, fiscal discipline, revenue outlook, governance strength, and the resilience of financial markets.
