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The federal government on Tuesday held high-level discussions with a delegation from Citibank to review Pakistan’s external financing options, investor outreach strategy, and overall market conditions, as Islamabad remains cautious about taking on new foreign debt.
The meeting took place at the Finance Division, where Finance Minister Senator Muhammad Aurangzeb and senior officials met Citibank’s delegation led by Habib Yousuf, Citi’s Country Officer, along with other senior members of its corporate banking team.
According to officials familiar with the discussions, talks focused on Pakistan’s external financing outlook and the recent performance of its international bonds. The government stressed that any future borrowing would be carefully timed and priced, with a clear focus on keeping debt levels manageable and financing costs under control.
Officials said the government is currently working on sovereign funding programs, including early preparation for medium-term note structures. However, they underlined that the immediate priority is to finalize financing arrangements already in progress, rather than rushing into new transactions before market conditions improve.
Investor engagement also featured prominently in the meeting. Government officials said Pakistan is aiming to attract long-term and active institutional investors, instead of short-term or speculative inflows. Recent portfolio inflows were cited as a positive sign of improving investor confidence.
The Finance Ministry also discussed how Citibank’s global experience could help support Pakistan’s sovereign financing plans, particularly in areas such as program structuring, documentation standards, and strengthening market infrastructure. Officials described these steps as necessary groundwork before moving toward more complex financial instruments.
Discussions briefly touched on trade-related and hedging structures, which officials said would be considered at a later stage once pricing frameworks and documentation are fully in place.
Finance Minister Aurangzeb reiterated Pakistan’s commitment to staying engaged with international financial institutions, noting that the country continues to be an important market for global banks. Both sides agreed to maintain regular dialogue and explore areas for closer cooperation going forward.
Government has been seeking external financing through a mix of bilateral, multilateral, and commercial channels as it works to address balance-of-payments pressures and meet targets under its ongoing International Monetary Fund (IMF) program. In recent months, the country has secured financing from Middle Eastern banks and development institutions as part of these efforts.
