Aurangzeb hopeful of early IMF board approval

Finance Minister Muhammad Aurangzeb on Tuesday expressed hope for the early approval of Pakistan’s Staff-Level Agreement (SLA) by the International Monetary Fund (IMF) Executive Board, following a meeting with Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, on the sidelines of the World Bank–IMF Spring Meetings 2026.

According to the finance ministry, the minister held a series of high-level engagements with international financial institutions, US officials and global business representatives, focusing on economic reforms, investment and external sector stability during the meetings, which are being held from April 13 to 18.

During his meeting with IMF officials and the Fund’s mission to Pakistan, Aurangzeb appreciated the successful conclusion of the SLA and expressed optimism about its early approval to sustain the momentum of Pakistan’s reform programme.

He also briefed 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 on economic growth and inflation.

The finance minister underscored Pakistan’s successful Eurobond repayment and reaffirmed the government’s commitment to meeting all 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, the statement added.

Separately, Aurangzeb met Sultan bin Abdulrahman Al-Marshad, Chief Executive Officer of the Saudi Fund for Development (SFD), and thanked the organisation for its continued support and development cooperation with Pakistan.

The two sides discussed the implications of the Middle East conflict on global energy security and its potential economic impact. Aurangzeb expressed hope for an early resolution of the conflict and stressed the importance of continued cooperation between Pakistan and Saudi Arabia.

Both sides reaffirmed their strong and longstanding partnership and commitment to enhancing economic ties.

In a meeting with United States Trade Representative Jamieson Greer, the minister emphasised the importance of strengthening Pakistan–US economic relations, particularly through increased trade and investment flows.

He highlighted Pakistan’s commitment to fostering a conducive business environment and improving market access to support sustainable economic partnerships.

The two sides held constructive discussions on advancing bilateral trade and investment, including expanding market access for exports, facilitating greater investment flows and deepening commercial linkages.

They also expressed satisfaction over progress in ongoing trade negotiations and reaffirmed their commitment to achieving mutually beneficial outcomes.

Aurangzeb also met Tsutomu Yamamoto of the Multilateral Investment Guarantee Agency (MIGA), where he welcomed a proposed short-term trade finance facility of up to $500 million, calling it vital for financing critical imports, including food, fertiliser, energy and essential machinery.

He stressed the need to expedite progress on the facility to ensure timely support for Pakistan’s external financing needs. Referring to arbitration cases, he said MIGA’s neutral facilitation could help achieve amicable resolutions while safeguarding investor confidence and protecting national interests.

The minister reaffirmed the government’s commitment to promoting sustainable investment and maintaining economic stability through continued cooperation with MIGA.

In another meeting, Aurangzeb met Karan Bhatia, Vice President and Global Head of Government Affairs and Public Policy at Google, and appreciated the company’s ongoing initiatives in Pakistan, particularly in artificial intelligence training and capacity-building.

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

During the visit, the finance minister is also expected to meet counterparts and financial leaders from China, Saudi Arabia, the United Arab Emirates, Turkiye and the United Kingdom, as well as senior officials from the US State Department and the Department of the Treasury.

He will further engage with representatives of global financial institutions and corporations, including Franklin Templeton, Rothschild & Co, Citibank and JPMorgan Chase.

The Spring Meetings are taking place against the backdrop of the ongoing Middle East conflict, which has delivered a significant shock to the global economy. The issue was also highlighted at the Pakistan Conference, where participants noted that the regional crisis has created a challenging economic environment for many countries.

IMF and World Bank officials have indicated that global growth forecasts may be downgraded, while inflation projections could rise, warning that emerging markets and developing economies are likely to be hardest hit by higher energy prices and supply chain disruptions.