Aurangzeb appreciates China’s IMF support, promotes economic cooperation during meetings in Washington

Finance Minister Muhammad Aurangzeb on Friday expressed appreciation for China’s continued bilateral support to the International Monetary Fund (IMF), as well as the constructive role played by its managing director in facilitating Pakistan’s program engagements.

According to a submission by the Ministry of Finance, Pakistan on X, the remarks were made during high-level meetings held in Washington, DC on the sidelines of the World Bank-IMF Spring Meetings 2026.

During his visit, Aurangzeb met Chinese Finance Minister Lan Fo’an, where both sides reaffirmed their commitment to strengthening economic cooperation and deepening their strategic partnership.

The finance minister briefed his counterpart on Pakistan’s progress under the IMF program, stating that the country had successfully “reached staff-level agreement for the third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF), with IMF Executive Board approval expected in early May.”

He further noted that Pakistan had successfully repaid its $1.4 billion Eurobond and secured “significant additional financial support” from Saudi Arabia to strengthen its external position.

On Wednesday, the finance ministry said Saudi Arabia had committed $3 billion in additional deposits, with disbursement expected in the coming week. The existing Saudi Arabian deposit of $5 billion, the minister added, would no longer remain subject to the previous annual rollover arrangement and would instead be extended for a longer period.

On external financing initiatives, Aurangzeb updated the Chinese side on progress on Pakistan’s planned initial Panda bond issuance, with the aim of diversifying funding sources and expanding engagement with international capital markets.

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Highlighting the growing bilateral trade, he noted that the proportion of trade between Pakistan and China settled in Renminbi (RMB) had increased significantly, stressing the need for an expanded currency swap arrangement to support increasing trade volumes. He also welcomed China’s recognition of Pakistan’s role in facilitating dialogue and promoting regional stability.

Reaffirming Pakistan’s commitment to multilateral cooperation, Aurangzeb conveyed “full and unconditional support” to the establishment of the Shanghai Cooperation Organization (SCO) Development Bank, especially as Pakistan prepares to take over the SCO chairmanship in September.

The statement added that the meeting ended with mutual appreciation for the continued support provided by China’s managing directors at both the IMF and the World Bank.

Separately, Aurangzeb held talks with People’s Bank of China Governor Pan Gongsheng, where discussions focused on financial cooperation, market access and IMF-related developments. According to the Ministry of Finance, the minister again expressed appreciation for China’s support to the IMF, especially within the Executive Board.

He also briefed the Chinese central bank governor on Pakistan’s planned Panda bond issue and requested an expedited approval from the National Association of Financial Market Institutional Investors (NAFMII).

Citing economic pressures resulting from regional developments, Aurangzeb said the government had activated targeted subsidies and demand management measures to mitigate the impact of the ongoing situation.

The meeting concluded with an invitation from Pan to the finance minister to visit Beijing in the near future.

In a separate engagement, Aurangzeb met OPEC Fund for International Development Executive Director Abdulhamid Alkhalifa. He expressed interest in fully utilizing the fund’s three complementary financing windows, including government loans to the public sector, private sector financing and Islamic financing instruments.

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The Finance Minister also called on the OPEC Fund to deepen its engagement with Pakistan’s private sector and explore policy-based budget support operations, Radio Pakistan reported.

The spring meetings take place against the background of the ongoing conflict in the Middle East, 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 may rise, warning that emerging markets and developing economies are likely to be hardest hit by higher energy prices and supply chain disruptions.