Finance Minister Aurangzeb hopes for early IMF board approval to keep reforms on track

Federal Minister for Finance Muhammad Aurangzeb, on Tuesday expressed hope for early approval by the IMF Executive Board of the Staff-Level Agreement (SLA), as he met Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF) Jihad Azour on the sidelines of the World Bank–IMF Spring Meetings 2026, according to a post on X by the finance ministry.

FinMin held a series of high-level meetings with international financial institutions, US officials, and global business representatives on the sidelines of the World Bank–IMF Spring Meetings 2026 scheduled from April 13 to 18, focusing on economic reforms, investment and external sector stability on Tuesday.

During the meeting with the IMF official and the IMF mission to Pakistan, the finance minister “expressed appreciation for the successful Staff-Level Agreement (SLA)” and said he expected early approval “to sustain the momentum of Pakistan’s reform programme”.

Aurangzeb also briefed Mr Azour on the economic impact of the ongoing conflict in the Middle East, describing it as “one of the most significant supply shocks in recent times”. He said the government was “actively managing the second and third-order effects of the crisis, particularly in relation to economic growth and inflation”.

The finance minister “underscored Pakistan’s successful Eurobond repayment” and reaffirmed the government’s commitment to meeting “all other bilateral and multilateral external obligations in a timely manner”.

Both sides discussed progress on fiscal and structural reforms, as well as efforts to enhance revenue mobilisation, and agreed on “the importance of maintaining macroeconomic stability as a foundation for sustainable and inclusive economic growth”, according to the statement.

The finance minister also held talks with the Chief Executive Officer of the Saudi Fund for Development (SFD), Sultan bin Abdulrahman Al-Marshad, on the same day and thanked the fund for its “continued support and its ongoing and future development cooperation” with Pakistan, a separate post on X by the ministry stated.

The two sides discussed “the implications of the ongoing conflict in the Middle East on global energy security and its potential economic impact”, with Aurangzeb expressing hope for “an early resolution of the conflict” and stressing “the importance of continued cooperation between Pakistan and Saudi Arabia”. They reaffirmed their “strong and longstanding partnership” and commitment to strengthening economic cooperation.

Meeting the United States Trade Representative Jamieson Greer, the minister “underscored the importance of strengthening Pakistan-United States economic relations, particularly through enhanced trade and investment flows”, the finance ministry stated in a post on X.

He emphasised Pakistan’s commitment to “fostering a conducive business environment and improving market access to support sustainable economic partnerships”. Both sides held “constructive discussions on advancing bilateral trade and investment”, including “opportunities to expand market access for exports, facilitate greater investment flows, and deepen commercial linkages”.

They also “expressed satisfaction over the steady progress in ongoing trade negotiations” and reaffirmed their commitment to “achieving mutually beneficial outcomes and supporting long-term economic growth”.

In a separate meeting with Tsutomu Yamamoto of the Multilateral Investment Guarantee Agency (MIGA), Aurangzeb welcomed a proposed short-term trade finance facility of “up to $500 million”, calling it important for “financing of critical imports, including food, fertiliser, energy, and essential machinery”.

According to the post by the ministry, Aurangzeb stressed “the need for expediting progress on the facility to ensure timely support for Pakistan’s external financing requirements”. Referring to arbitration cases, he said MIGA’s “neutral facilitation would contribute towards achieving amicable resolutions, while safeguarding investor confidence and protecting national interests”.

The minister reaffirmed the government’s commitment to “fostering sustainable investment and maintaining economic stability” and to continuing close cooperation with MIGA.

Aurangzeb also met Vice President and Global Head of Government Affairs and Public Policy at Google, Karan Bhatia, where he “appreciated Google’s ongoing initiatives in Pakistan, particularly its training and capacity-building programmes in the field of artificial intelligence”.

He “commended the company on the landmark development of local assembly of Google Chromebooks in Pakistan” and its decision to open an office in the country in July 2026. Both sides discussed initiatives to promote AI development “across key sectors of the economy, including agriculture and manufacturing”, and reaffirmed their commitment to supporting Pakistan’s “broader digital transformation agenda”.

Along with meeting counterparts and financial leaders from China, Saudi Arabia, the United Arab Emirates, Turkiye, and the United Kingdom, the finance minister is also expected to meet senior officials of the United States’ State Department and the Department of the Treasury. He will also engage with senior representatives of global financial institutions and corporations, including the leadership of major investment institutions and banks such as Franklin Templeton, Rothschild & Co, Citibank, and JPMorgan Chase.

The spring meetings will commence under the shadow of the war in the Middle East, which has delivered a major shock to the global economy; a concern also raised at the Pakistan Conference, where participants acknowledged that the regional conflict has created a difficult economic environment for most countries.

IMF and World Bank officials have stated they would downgrade their forecasts for global growth while raising inflation forecasts, warning that emerging markets and developing countries will be hit the hardest by higher energy prices and disruptions in supply chains.