Pitches Panda bonds in meetings with Chinese, IMF, Moody’s officials eying return to global capital markets
Pakistan Finance Minister Muhammad Aurangzeb speaks during an interview at the International Monetary Fund and World Bank Group’s annual spring meetings in Washington DC, US, April 13, 2026, PHOTO: REUTERS
WASHINGTON:
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a series of high-level meetings on the fourth day of the IMF-World Bank Spring Meetings in Washington, securing a $3 billion deposit extension from Saudi Arabia and discussing Pakistan’s return to international capital markets, according to an official statement issued on Friday.
The minister met Chinese Finance Minister Lan Fo’an and thanked him for China’s unwavering support. He briefed his counterpart on Pakistan’s progress under the IMF programme, including the staff-level agreement for the third Extended Fund Facility (EFF) review and the second Resilience and Sustainability Facility (RSF) review, with board approval expected in early May.
Aurangzeb informed the Chinese side that Pakistan has repaid a $1.4 billion Eurobond and secured additional financial support from Saudi Arabia. He also provided an update on Pakistan’s inaugural Panda bond issuance and highlighted the growing share of bilateral trade settled in Renminbi, calling for an expanded currency swap facility. He reaffirmed Pakistan’s support for the establishment of the SCO Development Bank during Pakistan’s upcoming SCO presidency.
In a separate meeting with People’s Bank of China Governor Dr Pan Gongsheng, Aurangzeb requested expedited regulatory approvals for the Panda bond and highlighted Pakistan’s response to the regional conflict, including targeted subsidies and demand management measures.
The minister also held a constructive meeting with Nigel Clarke of the IMF, where he provided an update on Pakistan’s macroeconomic outlook, external financing position and programme implementation. He noted that key economic indicators remain on track, with a stronger-than-expected current account performance supported by robust remittance inflows during Ramazan. Both sides agreed on the importance of maintaining exchange rate flexibility and preserving fiscal space in light of persistent global and regional uncertainties. Aurangzeb welcomed the upcoming IMF mission visit to Pakistan for discussions on the federal budget and programme-related matters.
Aurangzeb engaged with Rothschild & Co to discuss Pakistan’s plans to re-enter international capital markets after a four-year hiatus, including Eurobonds, Panda bonds and dollar-settled rupee-linked transactions. He also participated in a JP Morgan investment seminar alongside the State Bank governor, addressing global institutional investors on Pakistan’s macroeconomic stabilisation and energy management strategy.
In his meeting with Moody’s, the minister reaffirmed Pakistan’s improving external position and outlined the medium-term strategy to return to international capital markets through diversified instruments. He highlighted measures taken to ensure energy security and maintain adequate fertiliser stocks during the current crisis.
An agreement signing ceremony was also held to extend the maturity of a $3 billion deposit placed by the Saudi Fund for Development (SFD) with the State Bank of Pakistan (SBP). The agreement was signed by SFD CEO Sultan A AlMurshad and SBP Governor Jameel Ahmad.
The minister also met IFAD President Alvaro Lario and OPEC Fund CEO Dr Abdulhamid Alkhalifa, discussing agricultural transformation, water infrastructure, climate action and food security. He extended an invitation to the OPEC Fund leadership to visit Pakistan and appreciated the invitation to attend the fund’s upcoming event in Vienna. During the day, Aurangzeb also interacted with US and international media outlets, highlighting Pakistan’s improving macroeconomic outlook, steady growth trajectory and strengthened fiscal discipline.
