Pakistan expects to receive the next $1.3 billion tranche from the International Monetary Fund (IMF) soon, Finance Minister Muhammad Aurangzeb said during his interaction with international media in Washington, D.C..
Aurangzeb said there is currently no need to expand or modify the existing IMF program, adding that Pakistan may approach the Fund again only if economic conditions weaken.
He also reaffirmed the government’s commitment to maintaining financial stability and meeting external debt obligations on time. The minister said Pakistan is exploring all funding options, including Eurobonds, Sukuk, and commercial borrowing, while foreign exchange reserves currently cover around 2.8 months of imports.
A key highlight of the briefing was Pakistan’s plan to issue its first Panda Bond worth $250 million, with the broader program size expected to reach up to $1 billion. The initiative is expected to receive support from the Asian Development Bank and the Asian Infrastructure Investment Bank.
Aurangzeb said remittances are projected to reach $41.5 billion in the current fiscal year, while economic growth is expected to remain close to 4 percent.
The minister also acknowledged that rising oil prices due to the Middle East conflict have increased pressure on Pakistan’s economy. He said the government is considering building strategic petroleum reserves and increasing LPG and fuel storage capacity, while also signaling a faster shift toward renewable energy.
During his visit, Aurangzeb also held meetings with senior IMF officials, including Jihad Azour, the IMF mission team for Pakistan, officials from the United States Department of the Treasury, the Saudi Fund for Development, and Mastercard.