WASHINGTON: Pakistan expects to reach a staff-level agreement with the International Monetary Fund (IMF) this week for the release of a $1.24 billion tranche, Finance Minister Muhammad Aurangzeb said, as Islamabad seeks to strengthen investor confidence and sustain economic reforms.
In an interview with Reuters on the sidelines of the IMF and World Bank annual meetings in Washington, Aurangzeb said the talks with the IMF had been “constructive” and were nearing completion.
“The mission was on the ground for a couple of weeks. We had very constructive dialogue with them around the quantitative benchmarks and structural benchmarks,” Aurangzeb said. “During the course of this week, we’re hoping that we can get the SLA done.”
The agreement would complete the second review of Pakistan’s $7 billion Extended Fund Facility (EFF) and the first review of the $1.4 billion Resilience and Sustainability Facility (RSF) approved in 2024 to support climate resilience and economic stability.
An IMF mission concluded its visit to Pakistan last week without finalising the deal, but both sides signalled progress toward an imminent understanding.
Economic stability and investment push
Aurangzeb said Islamabad was committed to maintaining reform momentum and macroeconomic discipline, particularly in tax reforms, energy pricing, and governance.
He reaffirmed that the government aimed to sustain growth while keeping inflation in check.
The finance minister said Pakistan’s long-delayed privatisation programme was set to gain traction. “This is something which is very important as part of our economic roadmap,” he told Reuters.
Aurangzeb said progress was being made on the sale of three power distribution companies and the national carrier, Pakistan International Airlines (PIA).
“We are quite hopeful,” he added, citing renewed investor interest following the reopening of PIA’s lucrative routes to Europe and the United Kingdom.
According to Reuters, five business groups — including Airblue, Lucky Cement, Arif Habib Group, and Fauji Fertilizer — have expressed interest in acquiring PIA. If completed, the transaction would mark Pakistan’s first major privatisation in nearly two decades.
Green Panda Bond and global market return
Aurangzeb said Pakistan planned to issue its first green Panda bond — denominated in Chinese yuan — before the end of 2025.
The government also intends to return to international capital markets next year with a bond sale of at least $1 billion.
“Euro, dollar, Sukuk, Islamic Sukuk — we’re keeping our options open,” he said.
High-level engagements in Washington
During his six-day visit to Washington, Aurangzeb is holding a series of meetings with global financial institutions and development partners to bolster Pakistan’s investment and reform agenda.
In a meeting with Riccardo Puliti, Regional Vice President of the International Finance Corporation (IFC), Aurangzeb welcomed the opening of IFC’s new regional office in Islamabad and agreed to expedite the financial closure of the Reko Diq mining project — one of Pakistan’s largest foreign investment ventures.
He also held talks with IMF’s Jihad Azour and the World Bank’s Axel van Trotsenburg, reaffirming Pakistan’s commitment to fiscal reforms and climate adaptation investments.
At the Commonwealth Finance Ministers’ Meeting, Aurangzeb called for “concrete actions for a resilient and prosperous Commonwealth,” backing the establishment of a Financial Resilience Hub and the operationalisation of the Loss and Damage Fund.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb attended today the Commonwealth Finance Ministers Meeting (CFMM) focusing on “Strengthening Economic Resilience amidst International Policy Shifts”, on the sidelines of the International Monetary Fund (IMF) and… pic.twitter.com/s0lk7d9JjP
— Ministry of Finance, Government of Pakistan (@Financegovpk) October 13, 2025
Meetings with US and Islamic Development Bank officials
In a separate meeting with US Assistant Treasury Secretary Robert Kaproth and Counselor Jonathan Greenstein, Aurangzeb briefed them on Pakistan’s stabilising indicators under the IMF programme and new legislation on virtual assets.
He invited US investors to explore opportunities in energy, minerals, agriculture, and technology sectors.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb along with his team visiting the Washington D.C., to attend the annual meetings of the International Monetary Fund (IMF) and the World Bank (WB), was hosted today by the leadership and members of the US-Pakistan… pic.twitter.com/imrYGA6iKP
— Ministry of Finance, Government of Pakistan (@Financegovpk) October 13, 2025
The finance minister also met Islamic Development Bank (IsDB) President Dr Muhammad Sulaiman Al-Jasser to discuss financing for infrastructure, polio eradication, and oil supply projects under a new Country Engagement Framework.
In discussions with Citibank executives, Aurangzeb described Pakistan as an emerging “regional hub for digital innovation and financial services,” backed by reforms and improving credit ratings.
Reaching out to overseas Pakistanis
Aurangzeb concluded the day with a dinner hosted by Pakistan’s Ambassador to the United States, Rizwan Saeed Sheikh, attended by US officials and community leaders.
He praised overseas Pakistanis for their contributions to the national economy and reaffirmed the government’s resolve to “actively engage them in national development and investment opportunities.”
Minister for Finance and Revenue Senator Muhammad Aurangzeb, along with members of his delegation visiting the United States to attend the annual meetings of the International Monetary Fund (IMF) and the World Bank (WB), was hosted at a dinner by Pakistan’s Ambassador to the… pic.twitter.com/9oNJc7vGh3
— Ministry of Finance, Government of Pakistan (@Financegovpk) October 14, 2025
Pakistan’s delegation is attending the IMF and World Bank annual meetings amid efforts to secure international support for its reform agenda and attract long-term investment.
Aurangzeb is scheduled to deliver keynote remarks at regional platforms including MENAP and G24, and to participate in discussions on digital transformation and sustainable financing.
