Washington, October 14, 2025 – Federal Finance Minister Muhammad Aurangzeb voiced strong optimism for sealing a staff-level agreement (SLA) with the International Monetary Fund (IMF) this week, paving the way for a $1.2 billion disbursement to fortify Pakistan’s $370 billion economy. In an interview with foreign media amid the IMF-World Bank Annual Meetings, Aurangzeb praised the Fund’s program for providing crucial support post-inflation spikes, currency depreciation, and fiscal turmoil, noting visible strides toward stability.
The SLA follows productive talks with IMF mission chief Iva Petrova, focusing on the second EFF review and inaugural RSF assessment. Approval by the IMF Board next month would release funds tied to reforms like tax hikes and energy subsidies cuts. “We’re making good progress,” Aurangzeb said, downplaying hurdles.
Highlighting diversification, he announced Pakistan’s debut green Panda bond—yuan-denominated—by year-end, aiming for $1 billion+ in 2026 via euro, dollar, or sukuk formats. Backed by ADB and AIIB guarantees, it will finance climate projects.
Privatization accelerates next fiscal year, with PIA drawing bids from five consortia including Airblue and Lucky Cement groups, buoyed by restored Europe-UK flights and H1 profits. Three DISCOs are also on the block, marking bold divestments after decades.
