Pakistan is expecting to receive the next $1.3 billion tranche from the International Monetary Fund soon, Finance Minister Muhammad Aurangzeb said during interactions with international media.
Speaking in Washington, D.C. on the sidelines of global financial meetings, the minister indicated that while there is currently no need to modify the existing IMF program, Pakistan could approach the Fund again if economic conditions deteriorate.
He reaffirmed the government’s commitment to maintaining macroeconomic stability and ensuring timely repayment of external debt obligations.
Exploring Multiple Financing Options
Aurangzeb said Pakistan is actively exploring diverse funding avenues, including Eurobonds, Sukuk, and commercial borrowing. He noted that the country’s foreign exchange reserves currently cover around 2.8 months of imports.
A major highlight of the briefing was Pakistan’s plan to issue its first Panda Bond worth $250 million, with the overall program expected to expand up to $1 billion. The initiative is likely to receive backing from the Asian Development Bankand the Asian Infrastructure Investment Bank.
Remittances and Growth Outlook
The finance minister projected remittances to reach $41.5 billion in the current fiscal year, while economic growth is expected to remain close to 4 percent.
Energy Pressures and Policy Response
Aurangzeb acknowledged that rising global oil prices driven by tensions in the Middle East are increasing pressure on Pakistan’s economy. In response, the government is considering building strategic petroleum reserves and expanding LPG and fuel storage capacity.
He also signaled a faster transition toward renewable energy to reduce dependence on imported fuels.
High-Level Engagements Continue
During his visit, Aurangzeb held meetings with senior IMF officials, including Jihad Azour, as well as representatives from the U.S. Treasury, the Saudi Fund for Development, and Mastercard.
The developments highlight Pakistan’s ongoing efforts to secure external financing while navigating economic challenges amid global uncertainty.
