ISLAMABAD: Federal Finance Minister Muhammad Aurangzeb has announced that the next tranche of Pakistan’s loan program with the International Monetary Fund (IMF) is expected to be approved soon, with approximately $1.3 billion to be received in the near term. He clarified that there is currently no need to increase or change the existing program.
Speaking to international media in Washington, Aurangzeb said that if the economic situation weakens in the future, Pakistan could approach the IMF again, but for now the program remains on track. He reiterated the government’s commitment to repaying external debts and maintaining financial stability.
The Finance Minister outlined that Pakistan is considering multiple funding options, including Eurobonds, Sukuk, and commercial loans. He noted that foreign exchange reserves currently cover about 2.8 months of imports.
In a significant development, Aurangzeb announced that Pakistan is set to issue a Panda Bond worth $250 million for the first time, with the total volume of the Panda Bond program reaching up to $1 billion. The Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) will provide support for the initiative.
He projected that remittances are expected to reach $41.5 billion in the current fiscal year, while the growth rate is likely to be around 4 percent.
Addressing external pressures, Aurangzeb noted that the Middle East conflict has driven up oil prices, increasing strain on Pakistan’s economy. He said Pakistan is considering creating strategic petroleum reserves and emphasized the need to increase LPG and fuel reserves. He also indicated a rapid transition toward renewable energy.
During his visit to Washington, the Finance Minister held meetings with IMF Director Jihad Azhour and the IMF mission team for Pakistan. He also met with the Deputy Undersecretary of the US Treasury Department, the CEO of the Saudi Fund for Development, and the Chief Global Affairs officer of
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