The Federal Minister for Finance and Revenue, Mr. Muhammad Aurangzeb, met with the Chinese

Washington DC
Washington D.C. Finance Minister conveyed condolences on behalf of the leadership and people
of Pakistan over the recent terrorist attack against Chinese nationals in Pakistan. He reaffirmed
Pakistan’s unwavering commitment to ensuring the safety and security of Chinese citizens and
investments in the country. He lauded China’s invaluable contribution to Pakistan’s development
through initiatives such as the China-Pakistan Economic Corridor (CPEC) and support at
international financial institutions. Apprising the Chinese counterpart of the progress on CPEC,
Finance Minister stated that Phase-I focused on infrastructure development, while Phase-II would
emphasize monetizing assets through the operationalization of Special Economic Zones and
relocation of Chinese Private-Owned Companies (POCs). He expressed the government’s resolve
to accelerate Phase-II of CPEC. Finance Minister also expressed gratitude to the Chinese
government for the SAFE deposits and their regular roll-overs, which have played a crucial role
in addressing Pakistan’s external financing gaps. He informed the Chinese Minister that Pakistan
was entering into a larger and extended program with International Monetary Fund (IMF) and
looked forward to China’s continued support. He also briefed him on the government’s priorities,
including broadening the tax base, fixing the energy sector, and overhauling the state-owned
enterprises (SOEs). He stated that Pakistan aimed to tap into the Chinese Bond Market and launch
Panda Bonds during the fiscal year 2025-26. Both sides agreed on the need to continue their
cooperation within international institutions, reflecting deep-rooted economic ties between the two
countries.
Finance Minister also met with Mr. Martin Raiser, the World Bank’s Regional Vice President for
South Asia, to discuss Pakistan’s reform initiatives and development priorities. During the meeting,
Finance Minister expressed satisfaction that the new Country Partnership Framework (CPF)
between Pakistan and the World Bank would be finalized soon. He underlined the government’s
reform thrust in the areas of energy, taxation, and state-owned enterprises (SOEs), highlighting the
pursuit of both short and long-term goals in these crucial sectors. Referring to his earlier meetings
with the Senior Leadership of the World Bank, Finance Minister stated that the Bank’s focus on
climate change, digitalization, and human capital development aligns well with the priorities of
the government. Finance Minister highlighted the government’s vision to realize Pakistan’s true
economic potential in terms of sustainable economic growth. He stressed the importance of timely
completion of development projects and the realization of intended impacts and outcomes,
emphasizing the need for effective implementation and monitoring. He also briefed Mr. Raiser on
the role of the Special Investment Facilitation Council (SIFC) as a one-window facility for
investment promotion and facilitation. Both sides agreed on the need for reforms in the agriculture
sector, water management, and waste-water treatment.
Finance Minister met with Mr. Brent Neiman, Deputy Under Secretary for International Finance
at the U.S. Department of Treasury, on the sidelines of the IMF/World Bank Spring Meetings in
Washington D.C. Finance Minister briefed Mr. Neiman on Pakistan’s positive economic indicators
in the wake of the Stand-By Arrangement (SBA) signed with the International Monetary Fund
(IMF). He informed that the government has prioritized reforms in taxation, energy sector, and
state-owned enterprises (SOEs). He underscored the United States’ significance as Pakistan’s
largest trading partner and a key source of remittances and Foreign Direct Investment (FDI). He
briefed Mr. Neiman on the role of the Special Investment Facilitation Council (SIFC) in facilitating
foreign investment into the country. Finance Minister welcomed his visit to Pakistan after the
presentation of the budget and assured full support in this regard.
The Finance Minister, Mr. Muhammad Aurangzeb, held a meeting with Mr. Jin Liqun, President
of the Asia Infrastructure Investment Bank (AIIB), to discuss Pakistan’s economic trajectory and
explore avenues for enhancing cooperation in infrastructure development. During the meeting, the
Finance Minister briefed the AIIB President on Pakistan’s positive economic indicators, including
improving foreign exchange reserves, a stable currency, declining inflation rates, and a surging
stock market. He highlighted the renewed institutional and foreign inflows into the market, on the
back of the successful 9-month Stand-By Arrangement (SBA) with the International Monetary
Fund (IMF). The Finance Minister informed Mr. Jin Liqun that Pakistan was looking to enter into
a larger and extended program with the IMF, building upon the progress achieved under the SBA.
He identified broadening the tax base, fixing the energy sector, and undertaking state-owned
enterprise (SOE) reforms as key priorities of the government. Finance Minister expressed gratitude
for AIIB’s support in the aftermath of the devastating 2022 floods, particularly the co-financing of
US$ 250 million for the RISE-II program of the World Bank. He reaffirmed Pakistan’s commitment
to continue working closely with AIIB on the infrastructure development of the country. He
appreciated AIIB’s additional commitment of US$ 500 million in project assistance and
acknowledged the satisfactory progress on project implementation and disbursements.
Finance Minister met with Mr. Makhtar Diop, Managing Director of the International Finance
Corporation (IFC). In the meeting, Finance Minister briefed Mr. Diop on Pakistan’s positive
economic indicators, including improving foreign exchange reserves, stable currency, declining
inflation rates, and a surging stock market. He highlighted the renewed institutional and foreign
inflows into the market, bolstered by the successful 9-month Stand-By Arrangement (SBA) with
the International Monetary Fund (IMF). He informed the IFC Managing Director that Pakistan
looked forward to entering into a larger and extended program with the IMF. The Finance Minister
identified broadening tax reforms, fixing the energy sector, and undertaking state-owned enterprise
(SOE) reforms as key priorities of the government. He expressed gratitude to IFC for its support
in the outsourcing of the Islamabad airport, which will be followed by similar initiatives in Lahore
and Karachi. He noted with satisfaction the uptick in IFC activities in the country and requested
the corporation’s support in assisting the government in shifting its Public Sector Development
Program (PSDP) to PPP mode.
Other engagements of the Finance Minister included luncheon meeting with Country Management
Unit (CMU) of the World Bank, participation in the High-level Closed-door Roundtable on
Financial Markets Access: Challenges and Opportunities organized by the Middle East and Central
Asia Department (MCD), IMF and meeting with Mr. Andrew Torre, Regional President, VISA.
Finance Minister is leading Pakistan’s delegation in the IMF / World Bank’s 2024 Spring Meetings
being held in Washington DC. Other delegates include Mr. Imdadullah Bosal, Finance Secretary,
Dr. Kazim Niaz, Secretary Economic Affairs Division, Mr. Jameel Ahmed, Governor State Bank
of Pakistan and Mr. Adil Akbar Khan, Senior Joint Secretary, Economic Affairs Division