ISLAMABAD: Pakistan’s Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, announced that the country has successfully finalized a Staff-Level agreement.
Agreement with the International Monetary Fund (IMF). He shared this update during a productive discussion with representatives of S&P Global Ratings on the sidelines of the 2026 Spring Meetings of the World Bank and IMF.
The Finance Minister stated that the agreement is expected to receive approval from the IMF Executive Board soon, which will enable the release of the next tranche of funding under the program.Senator Aurangzeb also highlighted Pakistan’s commitment to meeting its external financial commitments, including the repayment of USD 1.4 billion on its Eurobond this month. Additionally, he mentioned enhanced financial backing from Saudi Arabia, including a USD 3 billion credit line and the extension of an existing USD 5 billion deposit from an annual rollover to a three-year tenure until 2028, reinforcing Pakistan’s external financial position.
He further noted that Pakistan has re-entered international capital markets after a four-year hiatus by issuing a Eurobond through private placement at a rate just below 7 percent, signaling renewed investor confidence in the country’s economic prospects.
The Finance Minister outlined Pakistan’s medium-term debt management strategy, which involves diversified issuance of bonds, including Eurobonds, Sukuk, and rupee-linked dollar bonds, aimed at expanding the investor base and reducing foreign exchange risks.
Senator Aurangzeb also briefed S&P Global on progress toward issuing Pakistan’s first Panda bond, highlighting that regulatory submissions have been completed and approval from the National Association of Financial Market Institutional Investors (NAFMII) is pending.
Addressing regional developments, he emphasized the government’s focus on mitigating immediate economic challenges by ensuring energy supply stability, optimizing logistics and pricing, and providing targeted digital subsidies to vulnerable groups. Concluding the discussion, the Finance Minister expressed optimism that Pakistan’s strengthening macroeconomic fundamentals and ongoing reforms will support a potential upgrade in its credit rating.
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