Islamabad: Pakistan’s Finance Minister, Muhammad Aurangzeb, is set to engage in crucial talks in Washington next week, where he will address the rescheduling of $3.4 billion in Chinese debt, as well as progress on Pakistan’s IMF loan.
The meetings will take place on the sidelines of the International Monetary Fund’s (IMF) spring sessions.
During his visit, Aurangzeb will meet with China’s Finance Minister, Lan Fo’an, to discuss extending the repayment schedule of Pakistan’s Chinese debt by two years.
The rescheduling is a pivotal move to help Pakistan manage its foreign financing gap.
This comes after Pakistan’s Deputy Prime Minister, Ishaq Dar, formally made the request in his previous visit to Beijing, though the deal is still pending.
Pakistan has asked China’s Export-Import (Exim) Bank to restructure its loans.
Aurangzeb will also engage with IMF Managing Director Kristalina Georgieva and other senior officials to review the progress on the ongoing $7 billion IMF program.
This includes discussions on the approval of the $1 billion second tranche, which has yet to be officially scheduled for a board meeting.
The minister’s talks with IMF officials will also cover revenue mobilization strategies and fiscal reforms that Pakistan is pursuing under the IMF program.
US Treasury Officials
In addition to his meetings with the IMF, Aurangzeb will meet with US Treasury officials, including Assistant Secretary Robert Kaproth, to discuss Pakistan’s economic cooperation with the United States.
While previous years saw high-level meetings with top US Treasury officials, this year’s discussions are expected to be at the assistant secretary level.
The minister is also slated to meet with James C. Cruse, Acting President of the US Exim Bank, to discuss financing options for the Reko Diq project.
This multi-billion-dollar copper and gold mining initiative faces a $3 billion financing gap, with the US Exim Bank previously expressing interest in contributing to the project, albeit under conditions regarding preferential creditor status.
Moreover, Aurangzeb will participate in discussions with key international financial institutions such as the World Bank and the Asian Development Bank (ADB).
ADB, WB Presidents
He is expected to meet with ADB President Masato Kanda, World Bank President Ajay Banga, and World Bank Vice President for South Asia, Martin Raiser, to explore opportunities for collaboration on Pakistan’s economic development, including the privatization program and potential financing for the country’s infrastructure projects.
Additionally, the Finance Minister is scheduled to attend a special briefing on climate resilience organized by the Climate Vulnerable Forum (V20), which focuses on tackling climate change vulnerabilities in 68 member countries.
Read More: Finance Minister Departs for US to Attend WB IMF Spring Meetings
Aurangzeb will engage with Mohamed Nasheed, Secretary-General of the Forum, to explore Pakistan’s role in global climate action.
He will also participate in the Coalition of Finance Ministers for Climate Action (CFMCA) to discuss financial solutions for climate-related challenges.
Aurangzeb’s itinerary includes a speaking engagement at the Atlantic Council, where he will outline Pakistan’s economic outlook for 2025 and beyond.
He will also address potential investors, sharing insights on fiscal and monetary policies and Pakistan’s ongoing reforms under the IMF program.
Furthermore, the minister will meet with representatives from Philip Morris International to discuss investment opportunities.
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The meetings in Washington represent an important opportunity for Pakistan to strengthen international financial ties, secure vital debt rescheduling, and advance key economic reforms.
