Washington (TDI): Pakistan is expected to seek financial support for its debt-ridden economy and funds to address climate vulnerability at the 2025 Spring Meetings of the World Bank Group and the International Monetary Fund (IMF).
Finance Minister Muhammad Aurangzeb arrived in Washington on Sunday to participate in the meetings, which gathers finance ministers and central bank governors from 191 nations to tackle international challenges like sovereign debt, climate finance, and reforms to global financial system.
Aurangzeb is leading a high-level delegation, which includes Governor State Bank of Pakistan (SBP) Jameel Ahmed, Finance Secretary Imdad Ullah Bosal and other key officials, according to Dawn.
The meetings, held biannually, serve as a crucial platform for high-level discussions among international financial institutions and policymakers. This year, they are set to take place from April 21 to 26.
One of the key sessions, arranged by the Coalition of Finance Ministers for Climate Action is likely to focus on fostering economic growth, sustainable development and climate action in the face of difficult fiscal challenges.
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The event comes at a time when both the IMF and World Bank are under increasing pressure to reform the international economic system to better support low- and middle-income nations.
Civil society groups, faith-based organizations and Pope Francis have demanded an international debt relief, saying that growing liabilities negatively affect efforts to invest in sustainable development and climate resilience.
In the World Bank’s 2024 International Debt Report, Chief Economist Indermit Gill said that since 2022, foreign private creditors have taken nearly $141 billion more from public sector borrowers in developing nations than they provided in new financing.
The debt situation of Pakistan remained fragile with external repayment obligations of $30.6 billion over the coming months, according to SBP.
Read More: IMF Flags Governance Flaws in Pakistan, Urges Reforms
Meanwhile, both domestic and foreign liabilities continue upward trajectory, squeezing fiscal space for development budget.
Islamabad is also seeking increased access to international climate finance. One of the world’s most climate-vulnerable nations, Pakistan has struggled to secure sufficient financing for adaptation and mitigation.
The World Bank estimates that Pakistan needs between $7 to 14 billion annually for climate adaptation, while some assessments suggest the figure could range from $30 to $60 billion per year.
