Pakistan appreciates China’s continued support at IMF

ISLAMABAD: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, during the fourth day of the IMF–World Bank Spring Meetings in Washington, held extensive high-level engagements with Chinese leadership.

He highlighted Pakistan’s improving macroeconomic outlook and efforts to mobilise external financing and strengthen strategic economic cooperation.

During a meeting with Chinese Finance Minister Lan Fo’an, Aurangzeb expressed deep appreciation for China’s longstanding and unwavering support to Pakistan, as well as the constructive role played by China’s Executive Director at the IMF in facilitating Pakistan’s programme engagements, according to a press release issued by the Finance Ministry on Friday.

He briefed his counterpart on Pakistan’s progress under the IMF programme, including the successful conclusion of a Staff-Level Agreement for the third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF). IMF Board approval is expected in early May.

The minister informed the Chinese side that Pakistan has successfully repaid a $1.4 billion Eurobond and secured additional financial support from Saudi Arabia.

Aurangzeb also shared updates on the planned issuance of Pakistan’s inaugural Panda Bond and highlighted the growing share of bilateral trade being settled in Chinese Renminbi, stressing the need for an expanded currency swap facility to support increasing trade volumes.

He appreciated China’s acknowledgment of Pakistan’s active mediation role in the ongoing regional conflict and reaffirmed Pakistan’s full and unconditional support for the establishment of the SCO Development Bank during Pakistan’s upcoming presidency of the Shanghai Cooperation Organization (SCO).

The meeting concluded with mutual appreciation for continued collaboration at both the IMF and World Bank.

In a separate meeting with Pan Gongsheng, Governor of the People’s Bank of China (PBOC), the finance minister provided updates on IMF programme reviews and Pakistan’s financing strategy, including progress on the Panda Bond issuance, and requested expedited regulatory approvals.

He also highlighted Pakistan’s proactive policy response to the economic impact of the ongoing regional conflict, including targeted subsidies and demand management measures. Pan Gongsheng extended an invitation to the finance minister to visit Beijing in the near future.