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Express Tribune
27-04-2025
- Business
- Express Tribune
FinMin for boosting regional trade
Finance Minister Muhammad Aurangzeb is interviewed during the G20 Finance Ministers and Central Bank Governors' Meeting at the IMF and World Bank's 2024 annual Spring Meetings in Washington. PHOTO: REUTERS Listen to article Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a series of meetings and participated in discussions on the sidelines of World Bank and International Monetary Fund (IMF) Spring Meetings in Washington. According to press statements released on Saturday, the finance minister discussed trade diversification and highlighted the improvement in Pakistan's macroeconomic indicators and its endeavours to stimulate investment in high-yielding projects. In a panel discussion at the IMF on the theme of "Navigating an Uncertain World," Aurangzeb emphasised the importance of promoting regional trade in the wake of global uncertainty and elevated risks, which have affected different countries. He called for diversification of sectors and markets and the need to shift the economic model from import substitution to export-led growth. Terming the IT sector a real game changer, he recommended the integration of IT systems across government and private sector entities. The federal finance minister held a meeting with the senior management of JP Morgan Chase, where he briefed them that Pakistan's economic indicators were moving in the right direction. He underlined the necessity of pursuing a more sustained growth trajectory to avoid the recurrence of boom-and-bust cycles. He shared progress on the Reko Diq copper and gold mining project and said that there was a need to diversify Pakistan's markets and sectors. He expressed the desire to return to international capital markets through the launch of inaugural Panda Bond. While holding talks with senior representatives of the United States Export-Import (Exim) Bank, led by Acting First Vice President Jim Barrows, Aurangzeb briefed the bank's delegation on Pakistan's improving macroeconomic fundamentals and the fiscal consolidation measures undertaken by the government. He pointed out that Pakistan had successfully reached a staff-level agreement with the IMF on the first review of the Extended Fund Facility and on a new arrangement under the Resilience and Sustainability Facility. He provided an update on the progress on the Reko Diq project and outlined its significance in attracting foreign investment. He sought the Exim Bank support to facilitate greater US investment in Pakistan. The minister also expressed Pakistan's desire to engage constructively with the US to address tariff-related issues and strengthen bilateral ties. Separately, in a meeting with UK Minister of State for International Development Baroness Chapman, the finance minister praised Chapman for the UK's longstanding partnership with Pakistan and its continued support for socio-economic development. He briefed her on the World Bank's 10-year Country Partnership Framework for Pakistan, which has placed a strong emphasis on tackling population challenges and enhancing climate resilience. Highlighting Pakistan's commitment to digital reforms, the federal minister underscored the importance of reducing the human interface between tax collectors and taxpayers through the use of technology. He appreciated the role of ReMIT platform in mapping development assistance over the past two years and in formulating an effective communication strategy. In a separate huddle, Muhammad Aurangzeb briefed US International Development Finance Corporation Acting CEO Dev Jagadesan on Pakistan's macroeconomic outlook and the potential investment projects, including the Reko Diq mining project in Balochistan. He appreciated the participation of senior US officials in the recent Pakistan Minerals Investment Forum and saw immense potential for deepening mutually beneficial cooperation between Pakistan and the US. Aurangzeb also met International Finance Corporation Managing Director Makhtar Diop and his team on the sidelines of the IMF-World Bank Spring Meetings. While lauding Diop for his visit to Pakistan in March, he briefed the IFC delegation on the strong macroeconomic indicators of the country and the recent sovereign credit rating upgrade by Fitch, terming it external validation of the government's successful reform initiatives. The minister appreciated the IFC's support for the Reko Diq project and urged the corporation to expedite its advisory work on the Karachi airport. He agreed with the IFC MD on the need to focus more on subnational governments and build their capacities for enhanced development impact.
Express Tribune
26-04-2025
- Business
- Express Tribune
Aurangzeb presses for climate action
Finance Minister Muhammad Aurangzeb has stressed the importance of climate resilience, attracting foreign investment and promoting economic diversification. He highlighted this during a series of high-level engagements on the sidelines of the World Bank and International Monetary Fund's Spring Meetings in Washington. According to a press release issued by the finance ministry here Saturday, at the high-level dialogue of the Fund for Responding to Loss and Damage (FRLD), he highlighted climate change as an existential threat to Pakistan, recalling the devastating 2022 floods. He stressed the urgent need to operationalise the Loss & Damage Fund with simplicity, agility and robust accountability mechanisms, urging faster disbursements to vulnerable nations. In a meeting with Hiroshi Matano, Executive Vice President of the Multilateral Investment Guarantee Agency (MIGA), Aurangzeb appreciated MIGA's efforts in resolving the Star Hydro power dispute and pledged full support for a potential trade finance facility. He welcomed MIGA's upcoming mission to Pakistan and expressed hope for finalising the deal this year. The finance minister also held a productive meeting with Thomas Lersten, a senior official from the US State Department, thanking the US for its strong participation in the minerals conference in Pakistan. He reiterated Pakistan's desire for constructive engagement to address tariff issues, for which a high-level trade and investment delegation was expected to visit the US. During discussions with Makhtar Diop, managing director of the International Finance Corporation (IFC), the minister highlighted Pakistan's strong macroeconomic indicators, including Fitch's recent credit rating upgrade. He urged expedited advisory work on Karachi Airport and stressed subnational governance capacity-building. The finance minister also met with senior representatives of the United States Export-Import Bank, led by Jim Barrows and briefed them on Pakistan's improving macroeconomic fundamentals and fiscal consolidation measures, highlighting the staff-level agreement with the IMF under the EFF and RSF. Providing them with an update on the Reko Diq project, the finance minister called for enhanced EXIM Bank support for US investment in Pakistan, expressing a desire to resolve tariff issues. In talks with JP Morgan Chase, the finance minister underscored Pakistan's stable economic trajectory and plans to diversify markets. He reiterated Pakistan's intent to return to international capital markets through an inaugural Panda Bond issuance. While speaking at an IMF panel discussion on "Navigating an Uncertain World," Minister Aurangzeb emphasised the importance of promoting regional trade amidst global uncertainty. He advocated for sector and market diversification and a shift from import substitution to export-led growth, identifying the IT sector as a key driver. Later, the finance minister met with Dev Jagadesan, acting CEO of the US International Development Finance Corporation (DFC), to discuss project pipelines, including Reko Diq, and potential US-Pakistan cooperation. The minister also met with Baroness Chapman, minister of state for international development of the United Kingdom and thanked her for the UK's longstanding partnership with Pakistan. He briefed her on the World Bank's 10-year Country Partnership Framework (CPF), focused on population and climate resilience.
Business Recorder
25-04-2025
- Business
- Business Recorder
China, KSA, UAE briefed about economy
WASHINGTON: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has met with the UAE Minister of State for Financial Affairs Mohamed bin Hadi Al Hussaini, Saudi Minister of Finance Mohammed Aljadaan and Finance Minister of China Lan Fo'an in Washington DC on the sidelines of IMF-World Bank Spring meetings. Aurangzeb during a meeting with President of the Asian Infrastructure Investment Bank (AIIB) Jin Liqun discussed banks financing for ongoing and future development projects in Pakistan and expressed the government's desire to proceed with the inaugural issuance of Panda Bond within the current calendar year. According to press release issued by finance ministry on Thursday, the meeting was held on the sidelines of the IMF-World Bank Spring Meetings in Washington, D.C. Aurangzeb highlights Panda, ESG bonds in key meetings at Washington: Finance Division Aurangzeb thanked the AIIB for its longstanding support for Pakistan's socio-economic development. He also conveyed Pakistan's keenness to sustain the current momentum of engagement with the Bank. Meanwhile, during a meeting with, Minister of State for Financial Affairs, United Arab Emirates, Mohamed Bin Hadi Al Hussaini, the minister briefed him on Pakistan's economic indicators, the recent sovereign rating upgrade by Fitch, and the privatization agenda of the government. He informed that a Staff-Level Agreement (SLA) had been reached on the first review under Pakistan's Extended Fund Facility (EFF) and a new arrangement under the Resilience and Sustainability Facility (RSF). He appreciated the investment appetite of UAE investors at both G2G and B2B levels and emphasized the importance of translating MoUs into concrete agreements. He also expressed interest in learning from the UAE's experience in regulating cryptocurrency. The Minister extended an invitation to HE Mohamed Bin Hadi Al Hussaini to visit Pakistan. In a meeting with Saudi Minister of Finance Mohammed Aljadaan, Aurangzeb thanked him for Saudi Arabia's longstanding and strong support to Pakistan in its pursuit of economic development, including through support for the IMF programme. He welcomed Saudi investments in Pakistan and reaffirmed the government's resolve to stay the course on reforms. He also extended an invitation to Aljadaan to visit Pakistan. During a meeting with Finance Minister of China Lan Fo'an, the minister recalled their last meeting held in Beijing in July 2024 and thanked the government of China for its unwavering support for Pakistan's socio-economic development and for its strong backing of Pakistan's economic reform programme supported by the Extended Fund Facility (EFF) of the IMF. He briefed the Chinese side on the key reforms being undertaken in the areas of taxation, energy, privatization, public finance, and state-owned enterprises (SOEs). The Minister also provided an update on the status of the Panda Bond and requested the support of the People's Bank of China (PBOC) to fast-track the issuance process. He extending a cordial invitation to the Chinese Finance Minister to visit Pakistan, the press release added. Likewise, in a meeting with President Global Policy and Advocacy of the Gates Foundation, Gargee Gosh, the finance minister appreciated the Gates Foundation's continued support for Pakistan's polio eradication efforts, maternal and child health and nutrition initiatives, family planning services, and vaccine delivery and immunization programs. He lauded the Foundation's collaboration with the Federal Board of Revenue (FBR) in introducing tax system digitalization to transform it into a digital tax administration. The discussions also included the integration of Buna and Raast payment platforms to promote seamless regional payments. The minister requested the Foundation to continue its support for Pakistan's polio eradication initiative and extended an invitation for participation in the upcoming awareness event on May 7, 2025, for the launch of Pakistan's national hepatitis C elimination programme.
Business Recorder
23-04-2025
- Business
- Business Recorder
Aurangzeb highlights Panda, ESG bonds in key meetings at Washington: Finance Division
Finance Minister Muhammad Aurangzeb expressed Pakistan's interest in returning to the financial markets, including the issuance of Panda and ESG bonds, in key meetings with the delegations of Deutsche Bank and Moody's at Washington, a statement from the Finance Division said. The meetings were held on the sidelines of the 2025 Spring Meetings of the IMF and the World Bank Group. In meeting with the Deutsche Bank team led by Myriam Ouazzani, Managing Director for the MENA region, Aurangzeb 'expressed Pakistan's interest in returning to the financial markets, including the issuance of Panda and ESG (environmental, social, and governance) bonds, supported by the country's macroeconomic stabilisation and recent credit ratings upgrade', the statement said. Panda Bonds are yuan-denominated debt instruments issued by foreign entities in China's onshore market. They provide an alternative financing mechanism for governments and corporations seeking to tap into China's vast liquidity while also supporting the internationalization of the Chinese yuan (RMB). ESG bonds are fixed-income securities issued to raise capital for projects that align with the principles of environmental, social, and governance criteria. These bonds allow issuers to finance initiatives that have positive impacts in areas such as renewable energy, social equality, and corporate governance. For investors, ESG bonds offer a way to contribute to responsible investment strategies while generating returns from their investments, according to the information available on Nasdaq website. In his meeting with Moody's commercial team in Washington, D.C Aurangzeb briefed the team on 'Pakistan's macroeconomic outlook, highlighting fiscal and current account surpluses, reduced inflation, a stable foreign exchange rate, and improved reserves', the Finance Division said. 'He also provided an update on the issue of the Panda Bond and agreed to continue discussions on possible collaboration in the future.' In January this year, Aurangzeb said Pakistan would raise around $200 million to $250 million from Chinese investors through Panda Bonds. Later in March, the finance czar said Pakistan was preparing to issue its first-ever Panda Bond in the Chinese market this calendar year (2025). 'I have been advocating, and I am very keen, that Pakistan—taking advantage of the second-largest and deepest capital market in the world—goes for an inaugural Panda bond,' the minister said in an interview with China Global Television Network (CGTN) then.
Express Tribune
28-02-2025
- Business
- Express Tribune
Finance minister meets high-level Jefferies team
Finance Minister Muhammad Aurangzeb is interviewed during the G20 Finance Ministers and Central Bank Governors' Meeting at the IMF and World Bank's 2024 annual Spring Meetings in Washington. PHOTO: REUTERS Listen to article A high-level delegation from Jefferies Investors, led by Alia Moubayed, met with Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, in Islamabad on Thursday to discuss Pakistan's economic outlook, investment climate, and ongoing reforms. The delegation invited the finance minister to the Pakistani Investors Day in London, scheduled for May 2025, as part of efforts to strengthen engagement with global investors. Aurangzeb highlighted Pakistan's economic stabilisation and the government's commitment to structural reforms in taxation, energy, state-owned enterprises (SOEs), and privatisation. He highlighted the country's stable macroeconomic position and outlined measures for fiscal discipline, revenue mobilisation, and investment facilitation. Key tax reforms were discussed, including the activation of the National Tax Council to enhance federal-provincial coordination and the expansion of the tax base by formally including the wholesale, retail, and real estate sectors. The minister also noted that all four provinces had approved the agricultural income tax bill, set to take effect on July 1, 2025. Additionally, he confirmed the shift of tax policy from the Federal Board of Revenue (FBR) to the Finance Division for a more strategic approach. The discussion also covered fiscal consolidation, rightsizing expenditures, and export-led growth, with the minister emphasising a structural shift in Pakistan's economic model. He provided updates on capital market developments, including ongoing Panda Bond discussions as part of Pakistan's external financing strategy. He reiterated the need for tactical support in capacity building, particularly in addressing population growth and climate change, which he termed as critical long-term challenges for Pakistan. The delegation acknowledged Pakistan's economic progress and expressed interest in investment opportunities in capital markets, infrastructure, and emerging sectors. They appreciated the government's reform agenda and efforts to enhance investor confidence.
